‘Stop over-pricing housing stands’ …Minister Garwe reads riot act to councils

Raymond Jaravaza/Peter Matika Zimpapers Writers

FOR more than 162 000 aspiring homeowners in Bulawayo, and elsewhere across the country, joining the city’s housing waiting list has long been seen as the first step towards owning a home, but having money in hand is increasingly proving to be a more powerful ticket to a residential stand than how long one has been waiting.

With the prices of residential stands ranging from about US$2 600 for some high-density stands to more than US$30 000 for serviced stands in sought-after urban areas, the country’s housing challenge is being compounded by a market in which those with access to hard currency can move faster than ordinary home seekers.

As demand pushes prices higher, Local Government and Public Works Minister Daniel Garwe has warned local authorities against selling public land at unjustifiably high prices and adopting practices that exclude ordinary Zimbabweans from home ownership.

In a circular addressed to all RDCs across the country seen by Zimpapers, Minister Garwe said it has come to the attention of the ministry that some Rural District Councils are disposing of council land at unjustifiably high prices, which tends to sideline the locals who cannot afford such exorbitant pricing.

He ordered councils, RDCs in particular, to review their land pricing policies and ensure that prices are evidence-based, professionally determined and affordable where appropriate.

Minister Garwe said councils must also abandon practices that encourage speculative pricing or unjustifiably exclude local residents from accessing public land.

“While every Zimbabwean has the right to acquire property, councils must ensure that the disposal of public land is undertaken lawfully, transparently, equitably, and in the public interest,” said Minister Garwe.

Minister Garwe said the disposal of council land must comply with the relevant statutory provisions as outlined in the Rural District Councils Act and in line with sound public financial management principles.

“Councils are reminded that these powers are fiduciary in nature and must always be exercised in the best interests of the public. Land that is not vested in the council, including communal land governed by the Communal Land Act may not be sold by a Rural District Council.

“Any disposal of council land must comply with the relevant statutory provisions as outlined in the Rural District Councils Act. Councils remain accountable under the Public Finance Management Act for ensuring that public assets are managed efficiently, transparently, and in a manner that secures value for money,” reads the circular.

In Bulawayo, the council’s housing waiting list stood at 162 836 applications by May this year, reflecting the demand for residential land.

Yet being on that list does not necessarily mean a person will be first in line when stands become available.

BCC is on record acknowledging that when stands are advertised, preference will be given to people who have the money to pay.

In 2023, the city’s then chief housing officer, Mr Jerry Sibanda, explained that if 300 stands were available against a waiting list of more than 136 000 people, for instance, council could advertise the stands and consider applicants on a first-come-first-served basis. The disparity is becoming more pronounced as stand prices climb.

A Chronicle survey found high-density residential stands in Bulawayo selling for between US$6 000 and US$7 000, while medium-density stands started at around US$15 000, with some reaching US$19 000.

In some smaller local authorities, prices can be considerably lower, with stands going for about US$2 600, while serviced stands in established or upmarket urban areas can cost US$30 000 or more.

An unserviced stand may be cheaper, but the buyer faces the additional burden of financing roads, water, sewerage, electricity and other infrastructure before construction can begin.

For a locally employed Zimbabwean, even the cheaper end of the market can be prohibitive, especially at a time when most stands are being availed by private developers who usually charge more.

For instance, a US$6 000 stand represents a substantial financial commitment for a household already meeting food, education, transport, rentals and other living costs.

At US$15 000 or US$30 000, home ownership becomes even more distant. For a Zimbabwean earning in the United States, Britain, Australia, Canada or elsewhere, the equation can be different.

Often diaspora buyers mobilise foreign currency faster and, in some cases, pay cash for land or property that a local resident would have to save for years to afford.

This has raised concerns among housing advocates that public land could increasingly go to those with access to foreign currency rather than those who have been waiting longest.

Bulawayo City Council has previously acknowledged the importance of the diaspora as a source of investment, while past council programmes have also provided for residential stands to be sold in foreign currency to people in the diaspora and locals with access to forex.

Rather, it reflects a difference in purchasing power in which two applicants can compete for the same stand, but one is earning in United States dollars abroad while the other depends on a local salary.

Minister Garwe has said councils must remember that their powers over public assets are fiduciary and must be exercised in the interests of the public.

“Councils must cease any practice that promotes speculative pricing or results in unjustifiable exclusion of local residents from accessing council land. All land allocations and sales must be undertaken through transparent, competitive and properly documented procedures approved by Council,” he said.

He further directed RDCs to ensure that land disposal complies with the Rural District Councils Act and sound public financial management principles.

The ministry is now preparing a nationwide investigation into council land sales.

The exercise is set to establish current land prices by category, the valuation methods being used, details of land sales and allocations concluded during the past 24 months and measures being taken by local authorities to comply with Government’s directive.

The investigation is expected to establish whether council land is being sold at prices that reflect its value and whether allocation procedures are being followed.