Ramat Gan Penthouse Sale Sparks Debate Over Real Estate Price Trends
The sale of a Highline penthouse in Ramat Gan for 9 million shekels sparks debate over whether the transaction signals a real estate price drop or a normalization of overinflated initial valuations.
The real estate market in Ramat Gan is witnessing an intriguing debate over property valuations following the sale of a penthouse in the Highline project at 19 HaMatmid Street. The 199 square meter penthouse, complemented by approximately 97 square meters of balconies on the 29th and top floor, was recently sold fully furnished for 9 million shekels. This transaction has sparked discussions regarding whether it reflects a broader price correction in the housing market or merely a unique pricing anomaly.
The Highline project was developed by Yam Suf Real Estate, owned by the Papushdo family, as part of an urban renewal initiative. The development replaced four residential buildings from the 1950s containing 83 apartments and five shops with two modern towers comprising 285 apartments. Sales commenced in 2017 at initial prices of around 25,000 shekels per square meter, climbing steadily to over 30,000 shekels the following year, and averaging 41,000 shekels per square meter over the past year and a half.
Comparative Analysis of Penthouse Sales
Evaluating the transaction requires looking at comparable sales within the development. A neighboring penthouse was purchased four years ago for 13.3 million shekels. While similar in size, that unit featured a larger 160 square meter balcony, a swimming pool, and unobstructed western views of the Mediterranean Sea, compared to the eastern urban view of Ramat Gan and Gush Dan offered by the recently sold property. Another adjacent penthouse was sold in January 2023 for 10.2 million shekels, placing the recent 9 million shekels sale at the lower end of a reasonable valuation spectrum.
"The current transaction is only 8.4% higher than a penthouse sold on the 28th floor of the second tower in March 2022, spanning over four years and a quarter. In real terms, after accounting for inflation, this can be characterized as a decline," noted appraiser Oded Landau.
Professional Insights and Market Dynamics
According to appraiser Oded Landau, the equivalent value of the sold penthouse—including balconies—reaches 40,000 shekels per square meter, compared to 47.5,000 shekels per square meter for the western penthouse. Landau emphasizes that the two units represent entirely different products due to orientation, views, and balcony sizes, yet notes that the figures reflect a certain downward price trend alongside location and view differentials.
Nick Sasson of Nicks Real Estate, who previously marketed the property, pointed out the initial asking price set by the developer.
"There is no law against advertising a property at an excessive price, but the closing price is what ultimately matters. What was unusual here was not the final sale price, but the initial asking price set by the company, which was much higher than what the current market is willing to pay. Overall, the market is heading toward price drops, and anyone pricing based on 2022 deals will struggle to sell," Sasson stated.
Yam Suf Real Estate CEO Tzahi Omer defended the pricing strategy, explaining that western penthouses command higher premiums due to panoramic views of Park Yarkon and the sea, massive balconies, and approximately 700,000 shekels worth of customized interior upgrades. Omer noted that eastern penthouses traditionally experience lower demand and are priced around 38,000 shekels per square meter, while the initial asking price of 11.9 million shekels was a remnant of peak pricing expectations from previous years.
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