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Mass Valuation in Developing Countries: The Case of Chitungwiza Town in Zimbabwe Maxwell Mutema.

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Presentation on theme: "Mass Valuation in Developing Countries: The Case of Chitungwiza Town in Zimbabwe Maxwell Mutema."— Presentation transcript:

1 Mass Valuation in Developing Countries: The Case of Chitungwiza Town in Zimbabwe
Maxwell Mutema

2 Mass Valuation Mass Valuation
Mass valuation: use of a standardized procedure to collect data to compute values to all properties within the jurisdiction or boundaries of a given municipality or local urban authority.

3 Why Mass Valuation? To establish property values to determine property taxes, rates and other charges related to real estate within the boundaries of a municipality or a local authority. To use the established property values as the basis for charging stamp duty tax on mortgages and purchase of real estate assets It is important for Urban planning and development

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5 Use of Technology in Mass Valuation
Technology-based Mass Valuation tools developed to overcome manual mass valuation challenges: Computer Aided Mass Appraisal (CAMA) Geographical Information System (GIS)

6 GIS image showing Zengeza 2 Residential Properties in Zimbabwe

7 The Case Study

8 METHODOLOGY AND RESEARCH DESIGN
The mass valuation exercise in Chitungwiza was based on manual procedures anchored on the ‘paper, tape measure and the clipboard’, currently operating in Zimbabwe under the Urban Council’s Act Chapter 29:15 Part XVIII.

9 Manual Mass Valuation (in pics) Chitungwiza, Zimbabwe

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11 Valuation of Properties
Different methods of valuation were applied on individual properties Methods were applied in accordance with property type The investment method of valuation was used on commercial properties Contractors method was used on institutions and government properties Income method was used on income producing properties such as filling stations

12 Conti……… Residential properties were assessed in order to determine the zone each property will be placed

13 Chitungwiza General Valuation Roll

14 Samples of the General Valuation Roll for the Different Property Categories

15 Commercial and Institutional Properties
PROPERTY OWNER STAND NUMBER STAND SIZE (m2 ) USE CODE VALUE OF LAND ($) VALUE OF IMPROVEMENTS ($) TOTAL VALUE ($) XXX 6911 90 D $ XXX $ 2XXX 7276 161 7275 195 3087 553 S18 3117 107 6909 9007 39.2 9008

16 Industrial Properties
PROPERTY OWNER STAND NUMBER STAND SIZE (m2 ) USE CODE VALUE OF LAND ($) VALUE OF IMPROVEMENTS ($) TOTAL VALUE($) XX 19713 4000 L $ XXX $ 2XXX 19817 5400 19174 1380 19369 8316 10472 2728 20743 5292 10467 400 D 19805

17 Residential Properties
PROPERTY OWNER STAND NUMBER SITUATION STAND SIZE (m2 ) MINIMUM STAND SIZE RATING UNITS RATING ZONE LAND VALUE XX 30200 Unit K 1815 1800 1 Unit 3 $ 2XXX 30201 2417 1.5 Units 30202 1826 30203 1835 30204 30205 30206

18 Summary of Actual Properties in the Roll versus Initial Estimates
 Property Type Actual Initial Estimate Variance Number % Variance Commercial and Institutional  2 968  1 970  998  51% Industrial  292  0 Residential  73 687  56 000  17 687  36%

19 Challenges Experienced During the GVR Exercise
Unavailability of Master Plans, Local Development Plans and some Layout Plans Lack of updated information regarding some subdivisions and developments Conflicting property information Lack of public awareness Inaccessibility of properties Unauthorized developments – illegal settlements Duplicated stand numbers

20 Examples of Duplicated Stand Numbers
FIRST USE DUPLICATE USE 19681 Shop, Unit M (Vamery Investments) Council Pre-school, Unit N (C Hupenyu) 19286 Reformed Church in Zimbabwe, Unit C Council Bar, Kubatana beer hall, Unit J 6913 Bethel Christian Church, Zengeza 1 Shop in St Marys (Kwenda Paul) 6914 United Pentecostal Church, Zengeza 1 Shop in St Marys (Stephen N) 6919 CCAP, Zengeza 2 Shop in St Marys(Malebe)

21 Examples of Informal Properties
SUBURB SITUATION Unit A Along road to Unit H there are 160 stands without an Environmental Impact Assessment Unit G Developments in buffer zones and open spaces, there are 8 stands pegged in a buffer 68 stands created in a wetland at Chibuku Stadium

22 Suggestions and Recommendations
There is need for increased inter-departmental coordination and integration, e.g. between the Surveyor General and Local Planning Authorities to create harmonized general plans The planning and housing departments need to upgrade their IT systems.

23 Conti… 3) It is essential for the Chitungwiza Council to have a supplementary roll. This is also a requirement under the Urban Council Act Chapter 15: 29 Section 248 Areas of the Supplementary Roll include: any property which does not appear on the current valuation roll; and any non-residential property the value of which has been materially affected by alterations, additions or demolitions

24 Conti… any properties which have been consolidated or any property which has been subdivided into lots as shown on an approved diagram or general plan within the meaning of the Land Survey Act [Chapter 20:12]; any property in respect of which there are errors in the general valuation roll affecting the value or assessment of the property

25 Benefits of the GVR to the Council
More properties on the council’s database, this translate into potential increase of revenue generated Assists the council in planning and development of the town Forms the basis for property titling Prioritisation of revenue generation and debt recovery strategies

26 THANK YOU


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