A tender in Pardessia, in the Sharon region, has just been published. Notably with minimum prices for agricultural land. But surprisingly, after a few weeks, the minimum price has been significantly revised downward.
Real estate experts who were surprised by the change in the initial offer expressed their astonishment:
“Is this a change in valuation due to the decrease in land value, or an error in the initial offer?”.
The tender issued in Pardessia concerns 12 different lots in the settlement.
Each of the lots has the right to build four housing units. Each plot covers an area between 800 m2 and 900 m2. Finally, these plots allow for a transformation of 48 housing units.
In the initial offer published at the beginning of the year, the minimum price per plot was between 1.246 million and 1.264 million NIS, excluding VAT and development fees.
However, the updated offer published at the end of May suddenly changed.
While the size of the lots and the building rights have not changed, the minimum purchase price has decreased by 875,000 shekels. That is an -885,000 shekels difference.
The rest of the details of the tender, as well as the development costs for the different lots, have not changed.
This represents a significant decrease in the minimum land price, which may indicate that land prices have dropped because the minimum price was set by the regulators of the Israeli authorities. Although in recent months, it seems that house prices have started to change direction (downward), CBS data shows an increase in prices of buildable land over the past five months.
Stay constantly tuned for new information with the team at Israland.
