Lincoln University and CBRE, a commercial real estate service provider,
have conducted research to investigate the impacts of the Canterbury
earthquake on the commercial office market in Christchurch. The 22
February 2011 Canterbury earthquake had a devastating impact on
Christchurch property with significant damage caused to land and
buildings. As at January 2012, around 740 buildings have either been
demolished or identified to be demolished in central Christchurch. On
top of this, around 140 buildings have either been partially demolished
or identified to be partially demolished. The broad aims of our research are to (i) examine the nature and extent
of the CBD office relocation, (ii) identify the nature of the occupiers, (iii)
determine occupier’s perceptions of the future: their location and space
needs post the February earthquake, and the likelihood of relocating
back to the CBD after the rebuild, and (iv) find out what occupiers see
as the future of the CBD, and how they want this to look.
The 2010 and 2011 earthquakes have had a devastating impact on the city of Christchurch, New Zealand. The level of destruction has been especially evident in the central business district where it has been estimated over 1000 buildings have already been or will eventually require demolition. Although, contrary to expectations, most of the fatalities were in relatively modern buildings, the Victorian and Edwardian era building stock was especially hard hit in terms of property damage. Unfortunately this era and style of building were also the focus of the most successful inner city revitalisation projects to date. A major research project is now underway examining the impact on the earthquakes on one of these revitalisation areas. The first step is to examine the international literature on similar inner city revitalisation or gentrification areas and in particular the characteristics of owners and occupiers attracted to this type of environment. This is the focus of this paper.
"Prior to the devastating 2010-2011 Canterbury earthquakes, the city of Christchurch was already exhibiting signs of a housing affordability crisis. The causes and symptoms were similar to those being experienced in Auckland, but the substantial damage to the housing stock caused by the earthquakes added new dimensions and impetus to the problem. Large swathes of the most affordable housing stock in the east of the city were effectively destroyed by the earthquakes. In itself this would have pushed the mean house price upwards, but compounding problems exacerbated the situation. These include the price effects of reduced supply of both rented and owned housing and increased demand from both displaced residents and an influx of rebuild workers. The need for additional temporary housing while repairs were undertaken and the associated insurance pay-outs bidding up rents with improved rental returns leading to increased interest in property investment. Land supply constraints and consenting issues inhibiting the build of new housing and political infighting and uncertainty regarding the future of parts of the city leading to a flight of development activity to peripheral locations and adjoining local authorities. Concerns that the erosion of the city council rating base combined with inadequacy of insurance cover for infrastructure will lead to large rates increases, increased development costs and reduced amenities and services in future years. These and other issuers will be elaborated on in this paper with a view to exploring the way forward for affordable housing Christchurch City."
