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A 500-square meter plot of land in Herzliya with a crumbling house slated for razing was sold for $900,000. The house is on the corner of Pitriya and Iftach streets.

The sale, carried out by a receiver, attests to the rebound of property prices in the priciest areas of Israel.

The plot had been offered by the law offices of Yoav Levy & Co, on behalf of Bank Hapoalim. Though Herzliya is by the sea, the plot of land had no special characteristics: no view of the sea, nor is the corner a particularly interesting one.

The opening price in the auction had been $720,000, or $1,440 per square meter. That was considered high to begin with.

Within half an hour, 18 bidders sent the price rocketing. An Italian Jew won the auction with a bid of $1,800 per square meter, or $900,000.

Realtors active in Herzliya say prices have risen by as much as 20% in the last year. But they add that in this specific case, the price went through the roof and sellers cannot expect to achieve similar levels. "The premium in this case was 50%," said one agent.