Housing proposal 'simply not affordable'

5:22 pm on 2 July 2015

The prices proposed for a major housing development in central Christchurch are unaffordable, the Labour Party says.

Earthquake Recovery Minister Gerry Brownlee has announced Fletcher Residential will develop 940 townhouses and apartments, costing between $400,000 and $900,000 each.

Labour's housing spokesperson Phil Twyford said that was too expensive for everyday New Zealanders.

He said at least 40 percent of the townhouses should be deemed affordable and cost about $250,000.

"I think the Government's got to reserve - I would say - 40 percent of the new apartments to be truly affordable," he said.

"The current price range that they're talking about, where I think the cheapest would be $400,000, that is simply not affordable."

Mr Brownlee said the prices of the homes simply reflected the market.

If the development agreement - for Christchurch's East Frame and North Frame - is confirmed later this year, Fletcher Residential will start buying seven hectares of land between Manchester Street and Madras Street.

The first homes are expected to be finished within 18 months of sign-off, with the whole development finished in eight or nine years.

Today's announcement follows a speech by Prime Minister John Key outlining a plan to replace the Canterbury Earthquake Recovery Authority with a new entity called Regenerate Christchurch.