Deal Analysis / Kiryat Motzkin at a 17% premium

The transaction under analysis involves a five-room, 127 square meter apartment in Kiryat Motzkin that changed hands for NIS 1.2 million.

The apartment was the model one in a new project developed by Bayside (Gav Yam) on 6, Zalman Shazar Street, in the Neveh Ganim neighborhood. The second-floor apartment has a view of a park, as well as a 15-square meter balcony.

The apartment was designed by a Bayside interior designer, Shay Andrashi, and furnished by the Soho chain. The furniture included a fully-equipped living room, dining space and master bedroom. The design included elements of plaster, mirrors, wood paneling and stonework tiles.

That's the description. Now for the analysis: Other apartments in this Bayside project had sold for NIS 1.025 million, so this one went for a 17% premium above the market price. The transaction price was influenced by the expensive finishings and furnishings. The extra amount paid seems on the heavy side compared with the norm, but it still falls within the boundaries of reasonability, considering that the furnishings were brand new and the design was unique.

Beyond the price, we must note that the neighborhood has been improving as demand picks up. The best proof is that the price of housing in the project has been around NIS 8,000 per square meter (not including the transaction we're studying). That's about 5% to 10% above the price level of transactions in the neighborhood six months previously.

The bottom line is that the buyers bought an apartment they liked, and the numbers indicate they didn't get "taken."

Land assessor Yehuda Dayan and the chief executive of the Eldar Project Marketing agency, Amir Shaltiel, helped with this analysis.