The Israel Land Authority (ILA) has published the results of the marketing of 171 lots in Kibbutz HaOn, on the coast of Lake Kinneret (Sea of Galilee). Demand has been strong, with 900 bids submitted for these lots in two auctions – the first on the open market and the second for army reservists who do not own homes.
On average, army reservists will pay more than a million shekels less for land. The average price on the open market is NIS 2.4 million, compared to NIS 1.3 million for army reservists. Successful bidders will need to receive approval from a hosting committee and prices do not include development costs, which are not yet known, and could make the cost significantly higher for winning bids.
The release of the winning bids comes after the court rejected a request from the Emek Yarden regional council and Kibbutz HaOn, which attempted to stop public land auctions. The auction had already closed in mid-September and bidders were forced to wait for the court to rule on the motion to find out whether they had won or not.
During the HaOn auctions, 248 lots will be sold, with an area between 300 and 500 square meters, for the construction of houses. In total, four auctions will take place, the first two of which, involving 171 lots, have now ended. The minimum bid price was between NIS 655.00 and NIS 1.1 million, before development costs.
Lots sold for more than double the appraisers’ price
In the closed auction for the HaOn land on the open market, 91 lots were sold and 656 bids were submitted for the purchase of the lots. The lowest price for the lot closed at this auction is NIS 1.6 million, and the most expensive lot was sold for NIS 4.6 million. The valuation of the lot with the highest bid was NIS 1.98 million (less than half of the winning price) and the minimum bid price was NIS 902,000. Regarding bids for the lot, the average bid price was NIS 1.59 million, lower than the appraised value.
In the past, « Globes » reported that Hanoch Daum, a writer and television personality, bought a house in HaOn for 8.3 million shekels, an amount much higher than the auction price.
During the second auction for reservists, 80 lots were sold and 216 offers were received. The average purchase price of land is 1.3 million shekels. According to the results of the auction, the most expensive lot closed by the reservists amounted to 2.8 million shekels. The expert valued the lot at NIS 2 million, the minimum price was NIS 925,000, and the average auction bid to purchase the lot was NIS 1.4 million. The lot that won the lowest price was only NIS 933,000 – the appraiser valued the land at NIS 1.3 million and the minimum price was only NIS 582,000.
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Auctions not yet closed for land on kibbutz HaOn
Two additional auctions have not yet been closed for the purchase of registration and lottery type lots at Kibbutz Ha’on, which include 73 units, one for disabled IDF veterans (25 units) and the other (48 units) for reservists. In these auctions, the booklets with the expected prices have not yet been published and the closing date is now December 23.
In the court petition which was rejected, the petitioners argued that marketing the lots at public auction at a high price « has fateful consequences for the future of the region, which means transforming the settlement into a holiday village for the rich of Israel, or into a “ghost” colony, and not a real community colony with community life. » They also alleged various flaws in the auction itself. The ILA responded that these were unique properties – on the Kinneret coast – and should therefore be marketed through a public auction, « giving priority to groups that the State seeks to support these days – disabled IDF veterans and reservists.”
The head of the Israel Land Authority, Yaakov Kvint, said: “I welcome the court’s decision, which took into account the well-being of all Israeli citizens, adhered to the principle of equality and adopted the plan which we developed under the leadership of the Chairman of the Israel Land Authority. ILA Council, Minister Goldknopf. HaOn land does not only belong to the residents of the regional council and their children. The court said « the purpose of the petition was simply to market the lots to children and their relatives. » In the tenders that we published, the winners were not tycoons or sons of the rich, but young people and reservists interested in living in a beautiful place and who received a very significant reduction on the price of the ground. »
The Jordan Valley Regional Council said in response to the court’s decision to reject the petition: “We are sorry to read the judge’s decision regarding the marketing of lots on HaOn. We will study it and we will certainly consider appealing to the Supreme Court. Court. »
Published by Globes, Israel Business News – fr.globes.co.il – November 6, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
