Glenda Hicks and Brendon Burns Respond to Mike Coleman

19 Aug 2011

Hi all:

I believe Mark Solomon and Co. of Ngai Tahu should be brought into this issue. They are involved in several large property developments, and should be in a position to influence the prices charged for new sections. Many of their own people will be amongst those affected by the 'inequity trap' faced by residents of eastern suburbs.

If Mike Coleman is right about developers racking prices up unjustly, surely they are in a position to do something about this - if their concern is for people as well as profits.

Sincerely,

Glenda Hicks
Senior Chaplain
Lincoln University
(next to which one of Ngai Tahu partnership land developments is planned)

Hi Mike, thanks again for your alert - obviously the equity issues you raise are not peculiar to Keller St or even just Avonside.

I have the rating database for all of Avonside. It shows 2007 Capital Value (RVs) as low as around $200,000 - which as you note is around the going price for a section! Even at the average RV of around $300,000 there are some serious questions about how on earth people can see their equity preserved.

I made these comments below publicly after seeing your email .... .

Over the weekend I biked around Avonside, stopping to talk to residents in Keller St, scene of several 'live' television events. Portaloos still dot the street. Some residents are anxiously awaiting their property offers due this week; others have already gone to other parts of Christchurch or beyond. Last night local resident and church minister Mike Coleman sent out an analysis which reinforces concerns I've raised. The average value of Keller St properties is a little over $300,000. To get a comparable section within established Christchurch, you are talking well over $200,000. A home will cost around that much again. This means people will need to add $90,000 or more to their mortgage if want a comparable property. This is not just a picture for Keller St; it applies across much of the red zone. It is not preserving equity as was repeatedly pledged. It is consigning a lot of people to real hardship that will endure a long time after the snow melts

Unfortunately our usual MPs cross-party forum has not yet occurred this week after snow travel problems. Certainly we will continue raising these crucial issues and asking what options the Government is considering to maintain the pledges made on equity being preserved.

Regards,

Brendon Burns

MP for Christchurch Central, Labour Spokesman for Climate Change, Water and Associate Environment

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