Christchurch – Rocked to the core Part 1

Posted on 09/08/10 in General, 1 Comment

Christchurch city has for the last few years seemed like a second home to me.

For the last 3 years I’ve spent at least one day per month in the capital of the south, and today I’m heading back there.

At the moment I’m sitting in Wellington airport waiting for my flight and wondering how Christchurch will react to the two things that have shaken it to the core over the last week.

Firstly and most obvious is the massive earth quake of nearly a week ago, and secondly the demise of South Canterbury Finance.

The earth quake seems like it will get top billing in the media and the mind over the coming months but I really feel that both events have resulted in the same outcome, they have both Rocked the establishment and made people very nervous.

The earthquake has been described as the biggest natural disaster in a first world populated area since hurricane Katrina in New Orleans, and the resulting media and political scramble has been impressive.

My interest after making sure that my friends and clients in Christchurch and their properties all survived well is in looking at what this event will do to the local economy and how that might impact on the real estate market.

Firstly SCF has injected $1.8 billion dollars of kiwis money back into the economy, this was money that had been invested and is now released for the former investor to now decide what they do with it.

Most people are saying that it will be re invested but I can’t imagine were it will go.

What looks like a safe return in the new financial environment?

Secondly it’s looking like the Christchurch earthquake will cost some $4 billion dollars to correct, and this is money that comes largely out of the faceless pot of the earthquake commission and international insurance companies, so there really should be very little hangover from the large spend up.

From my position sitting hear at the airport this morning it seems like I’m the only one heading to Christchurch today who isn’t carrying a hard hat or some tools.

I’d imagine that this will simply be wave number one of contractors heading south to complete repair quotes and over the coming months there will be a huge number of contractors who will need accommodation, food and lodging in the south while repairs are made.

This in my opinion will far out weight the economic down turn of having the city virtually closed for business this week.

I really wonder if Christchurch might use this opportunity to reinvent itself in the same way that Manchester did after it was selectively bombed by the IRA in the 70’s and 80’s.

Manchester rebuilt into a modern mega city using the massive construction going on to upgrade vital infrastructure and services.

The coming months will be very interesting and I really look forward to supporting my clients through these interesting times.

I hope to update this blog this evening after having a look round.

One Comment

  1. Craig

    “The earthquake has been described as the biggest natural disaster in a first world populated area since hurricane Katrina in New Orleans,”

    Its been horrific and I my heart goes out to all people and families affected. But Please biggest natural disaster since Katrina.

    Posted 9-8-2010

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