One year on from Canterbury’s big February 22 earthquake, Christchurch property and business owners are facing their biggest challenges.
Business interruption insurance and accommodation rental insurance is running out for hundreds of businesses and homeowners as well as staff this month.
Business leaders are anticipating a likely wave of business and property failures.
And around the country the seismic shocks reverberate as councils close public buildings and landlords come to grips with higher building codes.
The latest casualty this week was a spectator stand at Wellington’s Basin Reserve, deemed too dangerous to use.
In Christchurch, buildings continue to be closed weekly as councils respond to the reports of the Royal Commission into the earthquakes and reports from the Department of Housing and Building.
In Riccarton Rd the closure of a building means five businesses have ceased trading or are scrambling to make alternative arrangements. At Merivale mall, 20 stores were closed while some remain open. Building closures at two primary schools mean that pupils are having classes in tents.
These closures come in the wake of evidence at the Royal Commission, which has revealed incompetence and inadequate action by the city council and engineering firms after the first September 4, 2010 earthquake. These shortcomings undoubtedly contributed to the 200 or so deaths that occurred on February 22, 2011.
On the residential front, 6750 homes are red zoned and 2100 hillside homes are white zoned, meaning final decisions have yet to made about whether they are eligible for the government compensation based on rateable values.
So far only about 2000 sale and purchase agreements with the government have been settled, suggesting that the process has stalled.
The most likely reason is that the remaining red zoners cannot find affordable properties to buy. Most of the remaining properties have rateable values under $350,000 but an average section costs almost $200,000 and a house costs at least $250,000-odd to build.
The city council and cabinet ministers claim zoning changes have paved the way for several thousand new sections. But they are at least one or two years away from completion and there is no evidence developers are dropping prices.
Business and property commentators like retired developer Hugh Pavletich emphasise the need to attract people with development skills and a new attitude from civic authorities.
Comments and questions
DENY
DELAY
DEFER
The corruption in CHCH is out of control with Insurance companies, lawyers, govt and council all ensuring nothing happens.
This is the date they have all been waiting for as owners will be forced to settle their claims now that accomodation insurance and rental insurance ends.
A human tradgedy on a large scale and no one in power is doing ajnything except watching.
I never thought i would say it but a Labour government would have handled this much better and I can see that nothing positive will happen until they return in 2014.
...and fair enough too Helen
John Key government and the Christchurch old boys network looking like possums caught in the headlights.
Time to do something, boys and be men.
david shearer would be in his element in chch.
handing out money left right and centre.
the photo opps would be everywhere.
the fact is that the problems in chch will not be fixed for a long time so get used to them or get out
ChCh commercial property sentimentalist owners should wake up to reality that their dreams of replacement are just that, and should combine in a class action and get the CCC to buy them out , Hendo style.
Come on people be reasonable. This was a major earthquake followed by many others. No one in NZ or the world is prepared for this. Nor is anyone qualified to make all the decisions. Its takes time to gather the knowledge to decide is where the liquefaction is means that everything must go and the area becomes a park etc. Buildings have to come down, land checked prior to any new building. And amongst all this: yes there are egos at play and those who say they know better and know nothing, those that get a media sound bite which becomes a fact. The bitching does not help. Time is needed to get this right. Its not John Key & National, its not CERA or Bob Parker, its what it is and nothing more. No political party could have done any more. Owners of Multi story building cannot afford to rebuild to the new specifications and get a return on their dollar. Remember they had a multi story building on a block of land earning a reasonable return. Now they can only build 2-4 stories which will cost more than the original building for less income, others are unsure if they wish to rebuild. Then of course we have the fringe that wants only two stories with lots of parks etc. There is old saying, “if your not part of the solution you’re the problem”.
JP Without insurance and a clear unambiguous building code with officials who will provide realistic advice on what is possible a landowner cannot make a decision on what or if to rebuild. The longer this situation remains the more likely insurance payments will be applied elsewhere or to other investments.
Lots of other places in canterbury and beyond that dont have those issues but are going ahead great guns.... only ever two hours from the international airport from just about anywhere else in the region. Other places have good transport hubs, ports etc...
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