Online Reporter
Ray Bande
Senior Reporter
A 1 600-square metre stand in Phase One of Hertfordshire, Gweru, is going for US$17 500.
In the same city, a 1 000-square metre stand in prime residential area Clydesdale Park, ready to build and with vast investment potential, is listed at US$16 000.
None of that will buy you a high-density residential stand in Mutare.
A mere 300-square metre stand in the eastern border city is now fetching between US$20 000 and US$25 000.
A check by The Manica Post this week revealed that 300-square metre plots in developing high-density suburbs such as Zimta Park, Vengere, Hill View adjacent to the Dangamvura Link Road and others are being sold for US$20 000 to US$25 000. The price rises higher if the stand has a cottage or any structure.
In low-density areas, a 1 000-square metre property is going between US$50 000 and US$60 000, depending on the location and appeal. Several factors have been cited for the astronomical cost of residential stands and houses in Mutare, among them booming gold mining in Penhalonga, severe shortage of land, rapid population growth, and hyperactive middlemen who are pushing prices beyond the reach of ordinary men and women.
The Penhalonga theory
Mutare has been here before. During the Chiadzwa diamond rush, everything was priced out of reach. A six-pack of Castle Lager once sold for US$20 as the greenback appeared to have no value in the city. Socio-economic analysts say gold mining in Penhalonga is now fuelling a similar surge in property prices. After Chiadzwa, many who made money and spent it on entertainment learnt that money does not grow on trees, and are now investing in property and businesses.
Mutare property manager, Mr Manuel Chinyama, said: “The other issue is the fast growth of mining activities in Penhalonga, both informal and formal. This will force sellers to increase the selling prices of their properties so that they can get instant cash from gold miners who are rushing to invest their money in properties. In some cases, the one with cash will put in a big offer to purchase the property, as long as he or she gets a house or stand. They do not care about the price. There is also the aspect of people in the diaspora who are investing back home.”
City land shortage
Basic economics dictates that the lower the supply, the higher the price.
Mutare City Council has declared it no longer has land to allocate for residential stands, and its waiting list is ballooning. In his half-year performance report, Town Clerk, Mr Blessing Chafesuka said: “As a city, we no longer have land to sell for residential stands.”
For critics, that explains the sharp rise.
“I think two major things might be fuelling the skyrocketing of prices. Apart from the Penhalonga effect, there is high demand for residential stands and houses in Mutare, yet the market has little supply. So usually when supply is low and demand is high, that leads to high prices,” said Mr Chinyama.
Local property entrepreneur, Mr Mathias Madakadze said: “It is clear that the high demand for stands and houses on the market is all because of the limited supply chain. When demand is high, prices go up. Simple.”
The middlemen ‘musondosi’ factor
In recent years, Mutare has seen a surge in unregistered middlemen in property sales. They earn commission, usually an agreed percentage, and many observers, they appear to be setting the market price to suit their own financial interests.
Another Mutare property manager, Mr Gift Musariyarwa, said: “To some extent, the middlemen have played a role in the high prices for residential stands and houses in Mutare. They are the ones that normally advise the seller on what to expect from their property in terms of the price. Therefore, the seller sticks to that price, even though it is on the high side. It is impossible to do away with these unregistered middlemen because they are flexible when it comes to commission, unlike registered agents who demand fixed fees.”
Population growth
“Mutare City Council’s housing waiting list now exceeds 30 000.
The other thing is population growth in Mutare is increasing, but land development of stands is not matching it. There is need to increase land development in Mutare to cater for fast population growth,” said Mr Chinyama.
Be that as it may, the right to shelter is a fundamental human right.
It is recognised in the Universal Declaration of Human Rights, though legal enforcement varies by country.
Key principles of adequate housing include security from forced evictions, access to basic services such as safe drinking water, electricity and sanitation, affordability so that housing costs do not compromise other basic needs, and habitability relating to structural safety and protection from extreme weather.
