Key Factors of significant concern are:
- 70% of buildings in the central business district (CBD) were severely damaged and have been or will be demolished.
- 346 restaurants and bars have been lost from the central city area and at least 60% of the hotels in the central city will be demolished.
- Property related insurance claims from the earthquakes are currently estimated to total $30 billion.
- Around 100 schools require repairs or rebuilding.
- 37% decline in International education enrolments post-earthquake.
- 50,000 people who worked in the CBD became displaced and most have found temporary premises elsewhere.
- There have been job losses, workers have left the region and participation rates in employment have fallen, particularly among women and young people.
- More than 770 buildings in the central city have been demolished (August 2012) with a further 200 expected to be demolished in coming months.
- 46% of greater Christchurch’s urban sealed roads, water and sewerage infrastructure have been damaged.
- Insurance cost to the Lyttelton Port of Christchurch rebuild is thought to be around $500 million.
- Within the Canterbury District Health Board approximately 9,000 out of 11,000 hospital rooms need repairs at the cost of at least $400 million to bring CDHB facilities up to the minimum building code. The business case for the new hospital infrastructure is awaiting approval.
Opportunities arising from the Earthquake:-
- We have incurred costs in excess of $30 billion but will be the recipients of enormous cash flow from insurance and other sources. (Total damage was at least 80% insured and Government has committed at least $8.5 billion).
- The recently released CCDU Blueprint is brave and visionary and provides a framework to move the central city forward. We are going somewhere new and exciting!
- Our education institutions are reinventing themselves to meet the need of the new environment.
- Horizontal infrastructural work valued at $2.5 billion is underway. (96 road crews on the job, building to 150).
- Fletcher Building is currently completing up to 100 homes per day in the 10K to 100K damage category ($3.0 billion contract, involving 14000 contractors and subcontractors)
- Insurance issues are beginning to be sorted and new insurance is becoming available in the Christchurch market.
- EFTPOS transactions are above 95% normal, signifying strong retail activity (in the context of New Zealand’s biggest ever natural disaster).
- Regional export activity remains strong and ahead of the previous two years.
- At least two major irrigation projects are making good progress to increase irrigated land in Canterbury (to above 70% of all irrigated land in New Zealand).
- Hotels are reopening and accommodation across the city is increasing in capacity.
- Unemployment in Christchurch is lower than New Zealand’s average and job/career opportunities are building daily.
- Business survival post-Earthquake has been high and business churn increases post- Earthquake negligible.
- Very few businesses above usual have relocated from Christchurch.
- There has not been significant population flight (7200 net loss since Sept 4 2010 from a base population of close to 500,000).
- As we build scale to cope with the recovery challenge there will be opportunities right across New Zealand for Companies to collaborate with Canterbury based companies to participate in the rebuild.