Govt offers half price for red zone properties

4:16 pm on 13 September 2012

The Government has offered to buy 137 uninsured and commercial properties in Christchurch's residential red zone at half their rateable value.

Earthquake Recovery Minister Gerry Brownlee says the land was not eligible for the Crown's original red zone offer.

Nearly all properties in the red zone have to be abandoned by April 2013.

Mr Brownlee did not give any rationale for the half price offer, other than to say it was because those affected did not qualify for the Crown's initial offer.

The minister says the uninsured land includes 65 vacant sections and 50 that do not have appropriate insurance cover.

Twenty-two insured commercial sections have also received a similar offer because they fall outside the Earthquake Commission's cover.

Mr Brownlee says the offer excludes uninsured and commercial properties in the Port Hills, which have only recently been zoned red, and these will be addressed at a later date.