Voluntary property auctions begin

VOLUNTARY auctions are set to be launched in Bulawayo on Friday, according to property owners of attached properties the leeway to at least determine the value of their properties.

Sunday News reported that most auctions especially for goods attached as part of a debt have all along been auctioned at values determined by the parties seeking to recoup their money with owners not having a say.

This has resulted in some of the properties being sold below market value as long as those owed recover their money. Bulawayo Real Estate director  Mike Nekati said there was a worrying trend where people were losing their properties for a song after they are attached over debts.

He said, however, in a voluntary auction system, owners of properties are more in control of the selling price as they set the reserve price and are at liberty to reject the highest bidder allowing the property to roll over to the next auction.

"We have had a good response from companies and individuals coming forward to register the sale of commercial, residential and farming properties in and around Bulawayo. We are looking forward to a good launch on Friday and those interested can contact us for further details," said Nekati.

He said the voluntary auctions will provide a win-win situation for a person in trouble and the one trying to recover his or her money through the sale of property adding it was almost similar to livestock sale auctions.

 Nekati said his company was planning to conduct the auctions every Friday until the end of the year.

The biting economic situation has seen a large number of individuals and companies having their properties, movable and immovable, auctioned and other parties seek to recover debts. Cartels have also been formed that resulted in the goods going for a song.

"We believe the voluntary auctions will assist people evaluate the market prices because there seems to be some disparity between buyers and sellers' expectations on valuing. Forces of supply and demand will dictate the price hence everyone will have a clear idea on the current market values. You see a four-roomed house in Nkulumane having different valuations with some putting it at $20 000 while some say it's $15 000 with others pegging it at $12 000 so there is a need for people to be on the same page when it comes to valuations," said  Nekati.

The Affirmative Action Group has been fighting to stop auctions as property is being undervalued, leading to the collapse of businesses.

Vice-President Phelekezela Mphoko recently described as "criminal" the wave of business property auctions in Bulawayo and other parts of the country, saying this was a deliberate ploy to frustrate economic growth. Dozens of companies including State enterprises such as the Cold Storage Company (CSC) and Hwange Colliery Company Limited have lost properties and equipment through auctions over debts to various creditors. Some of the affected companies have suffered total collapse, with surviving ones struggling to keep afloat. Lobby groups and unions have partly blamed the development for loss of jobs as they urged adoption of a moratorium to protect company assets.