HomeNewsGold triggers price madness

Gold triggers price madness


KWEKWE Price hikes have become the order of the day in Kwekwe following the discovery of alluvial gold in Sherwood Block near the town recently.

A spending spree on cars and houses following the gold find has seen landlords in Mbizo and Amaveni suburbs hiking rentals to cash in on the now rich illegal panners.

Since December last year, rentals in high-density areas have shot up from around $20 a room per month, to about $70, excluding other charges, in a town, where the majority are civil servants and informal traders struggling to make ends meet.

The panners are now reportedly receiving preferential treatment when looking for accommodation.

Some are said to have gone as far as offering landlords $100 per room and paying the rentals a year in advance, a development that has seen those in formal employment failing to compete with them.

Those who cant match the new gold class have been pushed to the fringes of the town to areas like Mbizo 15, where there is no electricity and rentals have remained relatively low.

An estate agent, Searchmore Muringani, told NewsDay demand for houses had risen significantly following the gold rush.

We have seen an upward movement in prices with two-roomed semi-detached houses without title deeds hitting around $10 000 from the $6 000 mark.

The illegal gold miners who have a lot of cash to spend are the major movers of prices, Muringani said.

Amon Dube, who owns several houses in Amaveni, said he would hike rents at the end of the month, but added this was because prices of homes countrywide had gone up.

Those wanting to buy vehicles have been forced out of the city after prices hit the roof following the Sherwood Block gold rush, which has seen cars being purchased at twice their value.

Even motor spares are now beyond reach and many ordinary motorists are travelling to Harare to buy even small parts like brake pads now selling at around $40 a pair against $18 in Harare.

Recent Posts

Stories you will enjoy

Recommended reading