It is strange that Israel is confident eniough to build on land outside their borders, but not confident enough to "annex" the land. This could be due to the fact that, when Israel annexed the Golan, no nation on earth recognized this annexation. In fact, in the eyes of the world, the Golan issue is still pending. Israeli leaders knew for a fact that the world would not recognize a west bank annexation and that such an act would likely lead to a crisis. The bottom line is that Israel is constantly making PR announcements meant to influence people to think of Jerusalem and the west bank as being undivided Israeli territory. This stuff doesn't work in this day and age. Those with enough interest to follow Israel's antics on the internet can easily see through the pretense.
Joint Arab List Chairman Ayman Odeh rush to hospital with chest pain (Haaretz)
from the article: Netanyahu: Arabs and Jews alike benefit from unified Jerusalem