First ‘Target Price’ Sale a Rousing Success

Construction work on new homes outside Afula. Photo by Nati Shohat/Flash90
Construction work on new homes outside Afula. (Nati Shohat/Flash90)

One of the first projects to be marketed under the “target price” program of the Housing Ministry, which requires contractors to set aside apartments in projects for young couples, is an indication of the level of competition that buyers under this and other low-cost programs, such as the “occupant price” program, can expect. According to business daily Globes, there were over 4,000 applicants for the 196 apartments marketed in Rosh Ha’ayin.

A lottery is to be held to choose the lucky participants, who will win the rights to buy the homes. The chances of winning one of those rights: one in twenty. Housing Ministry officials stressed that while it appeared that the competition would be very stiff for homes under the program, “the first of anything always draws the biggest crowd,” they told Globes.

Under the program, buyers will be able to purchase a home for as much as 25 percent lower than the market price. The program is part of the government’s efforts to lower prices for home-buyers who have never owned an apartment and have a hard time buying homes on the open market because of the high price of housing in Israel.

A second offer for price target apartments will soon be held in the Modi’in area. So far, contractors have committed to building 953 discounted homes for buyers who qualify for the Housing Ministry’s conditions for purchasing the homes.