The government is continuing its efforts to cool the overheated property market via fiscal and other measures, as well as monetary policy. On February 8th Mr Steinitz and the chairman of the Knesset finance committee, Moshe Gafni, agreed a series of changes in property taxes. The price ceiling for apartments below which buyers are exempt from purchase tax-on the condition that they own no other home-will be raised from NIS 1.14m to NIS 1.35m. This measure is aimed at making apartments more affordable for young couples. However, purchase tax rates for buyers of second homes have been raised to 5% for apartments costing up to NIS 1m, 6% for those in the NIS 1-3m range and 7% for homes in excess of NIS 3m. The aim is to reduce the attractiveness of investment in second and third homes. But given the current boom conditions in the real estate market, it may simply provide a further boost to tax revenue from property transactions.