The Sunday News
Vusumuzi Dube, Municipal Reporter
THE Bulawayo City Council is selling residential stands at a price 50 percent more than commercial stands, a move that has angered some residents.
However, the council has said commercial stands were made cheaper so as to promote business and investment. The local authority last week released 502 medium density stands in Emhlangeni and 213 high density stands in Pumula South.
According to a schedule provided by the local authority, the cheapest stand in Pumula South costs $5 175 (200 square metres) while the most expensive will cost $10 350 (600 square metres).
At Emhlangeni the stands cost $11 040 (640 square metres) for the cheapest and $23 345 (1 500 square metres) being for the most expensive. Ironically during the same week the local authority advertised in the local media an intention to sell a piece of land, in Parklands low density suburb, measuring just over 5 000 square metres for $15 000 for the construction of a health facility.
This attracted the wrath of residents who castigated the local authority for the unusual disparities.
“I love my Bulawayo City Council but some of these decisions are questionable. An intention to sell 5 000 square metres at $15 000 to someone who intends to establish a private profit making business, while on the other hand an ordinary hopeful private citizen intending to build a home to nurture a family must pay the same for just a fifth of the area of land,” said Mr Nkanyiso Brezhnev, a local resident.
However, responding to written questions from Sunday News the local authority’s spokesperson, Mrs Nesisa Mpofu said the low cost of commercial stands is a deliberate move to attract investment.
“Industrial stands are deliberately valued at about 50 percent of the value of residential stands to promote investment. Business stands are cheaper to encourage employment creation, development, investor confidence and the overall vibrancy of the city’s economy. This is part of the city’s incentives to attract investment.
“Council is exploring ways of availing affordable stands to the residents on the housing waiting list. Bulawayo City Council uses a number of housing delivery strategies and the pre-sell scheme will continue to be used,” said Mrs Mpofu.
She said residents should realise that the cost of the stands is meant to include other costs bordering around the full servicing of the stands.
“The council pricing policy for new residential stands is based on full cost recovery on servicing costs. The recovery costs include road works, sewerage and water reticulation, surveying, town planning, cost of loans and the value of the virgin land.
“A rate per square is then computed by dividing the servicing costs by the number of stands being serviced. The selling prices over the last two years has been ranging around $22,50 per square metre therefore a 200 square metre stand is valued at $4 500 before Value Added Tax,” she said.
Mrs Mpofu revealed that the current housing waiting list in the city is pegged at just over 115 000.
