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The Israel Land Authority (ILA) has published the results for marketing 171 lots on Kibbutz HaOn on the coast of Lake Kinneret (the Sea of Galilee). There was lively demand with 900 bids submitted for the land in two auctions – the first on the open market and the second for army reservists that do not own a home.
On average the army reservists will pay over NIS 1 million less for the land. The average price on the open market is NIS 2.4 million compared with NIS 1.3 million for the army reservists. The winning bidders will be required to receive approval from a reception committee and the prices do not include cost of development, which are still not known, and could make the cost significantly more expensive for the winning bids.
Publication of the winning bids comes after the court dismissed a petition by the Emek Yarden Regional Council and Kibbutz HaOn, which attempted to halt the public land auction. The auction boxes had already been closed for bids in mid-September with the bidders forced to wait until the court ruling on the petition and find out whether they had won or not.
In the HaOn auctions 248 lots will be marketed ranging between 300-500 square meters for construction of houses. In total there will be four auctions of which the first two for 171 lots have now been completed. The minimum price for bids was between NIS 655,00 and NIS 1.1 million, before development costs.
Lots were sold at more than double the appraisers’ price
In the auction that was closed for the HaOn land on the free market, 91 lots were sold and 656 bids were submitted for the purchase of the lots. The lowest price for the lot closed in this auction is NIS 1.6 million, and the most expensive lot was sold for NIS 4.6 million. The appraisal for the lot with the highest winning bid was NIS 1.98 million (less than half of the winning price) and the minimum bid price was NIS 902,000. In terms of the bids for the lot, the average price of bids was NIS 1.59 million, lower than the appraised value.
In the past “Globes” has reported that Hanoch Daum, a writer and TV personality, bought a house in HaOn for NIS 8.3 million, an amount much higher than the price at auctions.
In the second auction for reservists, 80 lots were marketed and 216 bids were received. The average purchase price for land is NIS 1.3 million. In the results of the auction, the most expensive lot that was closed by the reservists is for NIS 2.8 million. The appraiser valued the lot at NIS 2 million, the minimum price was NIS 925,000, and the average bids in the auction to buy the lot was NIS 1.4 million. The lot that won the lowest price received 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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The auctions not yet closed for land on Kibbutz HaOn
Two additional auctions have not yet been closed for the purchase of lots on Kibbutz Ha’on, of the registration and lottery type, which include 73 units, one for IDF disabled 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 date for closing is now December 23.
In the court petition that was dismissed, the petitioners argued that the marketing of the lots in public auctions at a high price “has fateful consequences for the future of the area, which means turning the settlement into a vacation village for Israel’s wealthy, or a ‘ghost’ settlement, and not a real community settlement with community life.” They also claimed various flaws in the auction itself. The ILA claimed in response that these are unique properties – on the Kinneret coast – and therefore they should be marketed through a public auction, “Giving priority to groups the state seeks to support these days – disabled IDF veterans and reservists.”
Israel Land Authority head Yaakov Kvint said, “I welcome the court’s decision, which took into account the welfare of all Israel’s citizens, adhered to the principle of equality and adopted the outline that was drawn up by us under the guidance of the chairman of the ILA council, Minister Goldknopf. The HaOn lands do not belong only to the residents of the regional council and their children. The court ruling said that ‘the aim of the petition was simply to market the lots to the children and close relatives.’ In the tenders that we published, the winners were not tycoons or the sons of the wealthy, but young people and reservists who are interested in living in a beautiful place, and received a very significant discount on the price of the land.”
The Jordan Valley Regional Council said in response to the court’s decision to dismiss the petition: “We were sorry to read the judge’s decision regarding the marketing of the lots on HaOn. We will study it and we are definitely considering filing an appeal to the Supreme Court.”
Published by Globes, Israel business news – en.globes.co.il – on November 6, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
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