The decision on what to do with Christchurch's earthquake damaged redzone is one step closer, with the end of the public consultation period on the plan for the area. Over the past month Christchurch people have been asked to comment on a draft land use plan for the 602 hectares of land. Now those pitching ideas want the authorities to get on with the next step, so they can have some certainty about whether their projects can go ahead.
After the Christchurch earthquakes, the government declared about 8000 houses as Red Zoned, prohibiting further developments in these properties, and offering the owners to buy them out. The government provided two options for owners: the first was full payment for both land and dwelling at the 2007 property evaluation, the second was payment for land, and the rest to be paid by the owner’s insurance. Most people chose the second option. Using data from LINZ combined with data from StatNZ, this project empirically investigates what led people to choose this second option, and what were the implications of these choices for the owners’ wealth and income.
