The Property Council says parts of a plan by Christchurch City Council to rebuild the central city are terrifying would-be investors and will result in their money going elsewhere.
Chief executive Connal Townsend says there are aspects which are exciting, but the city council has gone too far in prescribing what developers can and cannot do.
He says the restrictive rules, including height limits and setback bans, will be enough to drive some investors away from the rebuilding effort.
Mr Townsend says a clause which would allow the council to remove exisiting land use rights has investors terrified.
The city council is in its second week of submissions on the draft plan.