26,000 Christchurch sections coming to market - CERA

Roger Sutton

BUSINESSDESK: The Canterbury Earthquake Recovery Authority says 26,000 sections should be coming to market for development in the devastated city of Christchurch next year.

Chief executive Roger Sutton told Parliament’s finance and expenditure committee the pace of the department’s work has accelerated since its inception last year, and it has paved the way for some widespread residential property development to house displaced locals.

“Twenty six thousand sections within the greater Christchurch region are available for development,” he said. “Hopefully by next year we will have those properties on market.”

Property values are increasing in Christchurch, according to last month’s Quotable Value figures, and ASB’s housing confidence survey shows house price inflation expectations are greatest in the country’s second-biggest city.

Sutton said the speed with which it’s moving has attracted all kinds of investors looking for greenfield opportunities and he’s optimistic about the city’s future.

CERA is working through some $2.5 billion of infrastructure reconstruction, with water, sewage, electricity and telecommunications networks at the front of the queue before new roading is installed.

Sutton came under fire from Labour Party MP Lianne Dalziel, who said residents in the ‘red zone’, where the government decided homes were uneconomic to repair, were given a Clayton’s choice in voluntarily accepting the government’s offer.

Last year, Prime Minister John Key and Earthquake Reconstruction Minister Gerry Brownlee announced an offer to residents in the ‘red zone’ to either sell property and land to the Crown at a pre-September valuation, or sell the land only to the government leaving the resident to deal with the insurer.

CERA still has at least a year to work through demolishing buildings in Christchurch’s central business district, and the department is trying to recycle as much material as possible, Sutton said.

The Earthquake Commission also appeared in front of the committee and chairman Michael Wintringham said the department is working through ways to pay a cash settlement over the increased susceptibility of land to future events.

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6000 Sections could bring prices back to normal or will they hold out for high prices e.g 180-200000 and create large areas that red zoners cannot afford. Will be interesting what will happen.

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who going 2 buy - given issues encompassing getting a commerical hub underway is not goana happens due to replacement cost, risk and building restrictions/hassles

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If the section price is right Christchurch will be a boom town but if priced to high people will look somewhere else to build giving the risks and costs to build in quakeville.

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The Christchurch market is very risky as the city is still in ruins and insurance money is flowing out to other regions. The housing market is going ok now but what about 6-12months later if the outflow of locals continues at current levels. It could mean no new houses needed.

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It is impossible to create 26,000 sections by next year - not enough machinery or manpower. Developers have no intention of dumping so many sections on the market. Nor are any of the new ones affordable for red zoned residents. The best estimate is a few thousand may be available at prices beginning around $180,000 for a tiny one..

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Christchurch will just have to get used to a higher cost of land.
Here in Auckland new sections are between $300k - 450,000 for a measley 600m2. Chch is learning a few hard lessons of current building costs fast.

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You need to understand Trevor that it is not the price as such that is the issue for red zone Christchurch'ers. It is the DIFFERENCE between the paid out value of their red zone section and the cost to purchase a new section. I dont dispute that higher land prices are a fact of life, and that Aucklanders have it worst than most. However you might not make a comment like yours if your insurance payout left you massively short of the ability to replace your land loss like for like??

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what made Christchurch great, was that we could afford to have a section for our kids to play in happily, one major factor, as to why, cantabrians havent been aucklanders.. you just dont GET what we have lost.

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Plenty of sections available now in Hamner.

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How many of these sections were going to be available about now anyway without CERA intervention? I know of at least 1,000.

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"The Earthquake Commission also appeared in front of the committee and chairman Michael Wintringham said the department is working through ways to pay a cash settlement over the increased susceptibility of land to future events"...what on earth does this mean?
No land remediation just compensation???

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This is nonsense. It is 100% impossible to develop 90% of these sections in the next 2 years. There are a bunch of developers selling dreams in suitcases - they are ratbags and will be found out when they cannot deliver. Mr Sutton is either naive or being disenginuous when he is quoting 26,000 sites. Yes, perhaps zoned land at a max-ed out density = 26,000 sections. BUT the reality is that actually delivering titled stock is way outside the timeframe that he, and unscrupulous developers - ignorant to the challenges of land developmnent in post-EQ ChCh - are stating.

Responsible developers are not making any such claims.

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Dreamers - who would want to take the risk. No idea who your neighbours will be and how the demographic fits any chosen lifestyle, nappy valley or sleepy hollow its a roll of the dice. Far better to buy in a mature suburb even if its an old home.

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http://ipone-m.com
nice Audi new posts

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I ask again.....Anybody like to reply?
"The Earthquake Commission also appeared in front of the committee and chairman Michael Wintringham said the department is working through ways to pay a cash settlement over the increased susceptibility of land to future events"...what on earth does this mean?
No land remediation just compensation???

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