However, significant risk mitigation work and land remediation are likely to be required before insurers are willing to provide cover.
A new governance committee has been established for the residential red zone – formally known as the Ōtākaro Avon River Corridor (OARC) – signalling increased momentum behind projects and programmes in the area.
Mayor Phil Mauger has supported exploring options for more housing on land at the edge of the red zone.
About 10ha of red zone land, mostly in Richmond and Dallington, is already zoned for housing.
Another 24ha is earmarked for trial housing areas that could showcase advanced land stabilisation techniques, but likely on a smaller scale than the edge housing areas.
More than 560ha of OARC land will remain for natural regeneration and projects such as recreation areas, wetlands and flood mitigation infrastructure.
Construction analyst Mike Blackburn said quality land on the city’s edge in areas like Halswell and Belfast will become increasingly scarce in the next six to eight years as more housing is built.
“Christchurch faces an inherent long-term problem with land development,” he said.
“There has been some talk among developers about building in the red zone, and that’s going to become an increased conversation.”
Mauger has also signalled openness to housing in other parts of the red zone not yet zoned for it.
He did not say what parts he was referring to, but told The Star any district plan changes would involve “significant consultation”.
He would also not say if he was aware of any developer interest in red zone land, but said the city council is “committed” to delivering the 2019 regeneration plan for the OARC, which first set aside red zone land for housing.
City council citizens and community general manager Andrew Rutledge said the OARC committee could recommend areas for rezoning, but final decisions would rest with councillors.
The committee will include three Ngāi Tūāhuriri representatives and three council members – the mayor, deputy mayor Victoria Henstock and Burwood councillor Kelly Barber.
Insurers say more detail is needed before decisions can be made.
IAG, which owns AMI and State, said it is aware of the proposal but needs to better understand the council’s plans.
“We keep an open mind on these issues because it is our intention to continue providing insurance to as many New Zealanders as possible, while also reflecting the risk,” a spokesperson said.
Tower Insurance chief executive Paul Johnston also signalled openness, saying cover could be offered where appropriate safeguards are in place.
“Where land is rezoned, infrastructure is upgraded and effective mitigation is in place, Tower would expect to offer cover on terms that reflect the underlying risk of the individual property,” he said.
Johnston said Tower assesses individual properties on their own merits.
An Insurance Council spokesperson urged caution, saying any development would require a “high degree of care”.
“We would expect developers and planning authorities to undertake thorough due diligence, including robust geotechnical assessment and appropriate mitigation work.”
