Bethel Finance: Gov't boosts housing supply despite price falls

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Bethel Finance news:
Despite the fall in apartment prices, the Ministry of Housing and Construction and the Israel Land Administration has issued tenders for land for the construction of a further 6,000 apartments. This is the first instance of aggressive marketing by the government since the public dispute last month between Governor of the Bank of Israel Prof. Stanley Fischer and Minister of Housing and Construction Ariel Atias. Fischer wants Atias to slow the rate of housing supply which he says is dragging down prices and harming the banks and contractors.

The Ministry of Housing said, "These tenders will bring about record marketing in 2011 above the forecast for the year and significantly higher than the level of marketing in 2010. This continues the marketing policy set out by the Minister of Housing and Construction in September 2009 for massive marketing of land for housing to ease the housing distress and lower the price of homes."

Atias's aggressive marketing has pushed up housing starts to 45,000 - the highest for a decade- and at present 77,500 homes are under construction around the country.

The latest tender includes 509 units on Ofakim, 490 homes in high rises in Petah Tikva, 248 homes in Tel Mond, 117 homes in Yavne - south, 150 homes in Kfar Yona, 229 homes in Ashkelon, 300 homes in Nitzanim and 430 houses in Beit Shemesh.