Property Talk: $2b injection in Christchurch on the cards

After the initial excitement at Christchurch City Council’s announcement of a $US2 billion fund to be set up by Chinese giant Guoxin for redevelopment projects, it seems the gloss has worn off a bit.

After inquiries by NBR journalist Chris Hutching, it appears the “commitment” is a vague public relations expression of political friendship and the $US2 billon refers to the possible value of projects that may be identified in coming years.

Lobby group Steel Construction NZ has also stepped into the discussions saying any fund raises questions about preferential treatment and asks why haven’t city leaders tapped into money that has left Christchurch since the earthquakes, if money is the issue.

On the earthquake theme, Christchurch lawyer Grant Cameron, who is leading a class action on behalf of 47 Southern Response (formerly AMI) policyholders for settlement and damages, says moves are afoot to stop the High Court action going ahead as a class action.

International consortium Litigation Lending Services is funding the class action and it is hoped other policyholders will join the court case. The claimants want $25,000 each for emotional stress, rental costs and interest on mortgages plus their claims paid out in full.

A majority of Auckland investors think the Auckland Council valuations on their properties are wrong.

As Chris Hutching explains a survey by Crockers has found nearly a third of people think the valuations are too low and one in 10 investors have contested it.

While Auckland property investors aren’t happy with the council, neither are six of its own councillors after unsuccessful attempts to have the council’s wages costs and staff numbers capped.

Councillor Cameron Brewer, who has been leading a long-campaign to bring the council’s total staff costs under control, has highlighted figures that show the wages bill could balloon out to $1 billion in the next five years from the already budgeted $771 million for this financial year.

Mr Brewer expects the wages budget to exceed this as has happened with the budgets for the past two years.

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