Ramat Aviv HaYeruka: NIS 59,800 per sqm

In Ramat Aviv HaYeruka the average price stands at NIS 59,800 per sqm, and 58 apartments changed hands over the past year. The genuinely interesting number, though, is hidden in the transaction table: every recent deal recorded in the neighborhood closed in a new project that has not yet been completed, and those are the deals that pushed the average transaction back up to about NIS 5 million.

Why this matters

Ramat Aviv HaYeruka, which is Ramat Aviv Aleph, is one of the first neighborhoods built north of the Yarkon. Most of it is low and generously spaced, buildings of three to five floors from the 1950s and 1960s, with mature boulevards and quiet streets. Longstanding residents hold their apartments for decades, and resale supply is thin.

When every recorded transaction comes from a new project, the neighborhood statistics begin to describe one product only. That misleads anyone trying to price an older apartment against them.

The standout transactions

At the Brodetsky North project, a three room apartment of 111 sqm sold in July for NIS 5.98 million, about NIS 53,873 per sqm. In the same project and on the same day, a four room apartment of 109 sqm sold for NIS 9.07 million, about NIS 83,247 per sqm.

The record deal closed in June at Brodetsky 27: a five room apartment of 152 sqm for NIS 14.96 million, about NIS 98,421 per sqm. Delivery in these projects is scheduled for 2028 to 2031, so these are prices for future apartments being recorded today.

The gap against resale

A four room resale apartment in the neighborhood closes at around NIS 4.55 million, a gap of about 26% against its new equivalent. Some 42 apartments are currently offered in the neighborhood across a wide range, from a four room garden apartment at NIS 4.49 million to a penthouse of 145 sqm at NIS 9.3 million.

How we read it

Anyone weighing a purchase in Ramat Aviv HaYeruka first has to decide whether they are buying an apartment to move into now, or a product that will be delivered in three to five years. Those are two very different financial decisions, with different payment schedules and different risk.

Anyone selling an older apartment in the neighborhood should be especially wary of the published average. NIS 59,800 per sqm is not the price of an apartment from the 1960s, and presenting that expectation to a buyer damages the deal at the opening. The right approach is to compare against resale transactions on the same street, and that is what we are here for. A good place to start is our page on the neighborhood.

Courtesy of Bizportal · read the original article