As another calendar year winds down and we extend beyond the 5 year anniversary from the first earthquake, we are seeing more and more certainty in our pathway forward.
We have dozens of cranes erecting dozens of buildings in our central city, and we are about 40% through the overall rebuild. Economic activity is plateauing, but it is expected to remain on a high plateau for the next 3 to 4 years.
Our residential sector is slowly but surely being sorted with 4,000 of the 25,000 homes in excess of $100k damage or destroyed altogether having their rebuild or repairs managed by insurance companies and the balance being cash settled.
Cash settlement of around 20,000 homes in the city is putting a huge amount of capital into the hands of home owners. It will be really important that that capital is spent wisely on repairing and rebuilding houses in our city, which still has a significant housing deficit and a strong demand for housing, particularly in the heart of Christchurch.
Never before has so much cash resulting from insurance settlements been deposited into a community of such a small number of people. $32 billion of insurance pay-outs in the context of a $40 billion earthquake and a population of 360,000 people is an extraordinary occurrence which will have a lasting legacy on the economic construct of our city.
We need to ensure the money is spent well and spent wisely and that we lock in a golden future for our city and our region.
Canterbury Employers’ Chamber of Commerce