New Zealand offers to buy 5,000 quake-hit homes

WELLINGTON: New Zealand offered to buy 5,000 severely-damaged homes in quake-devastated Christchurch Thursday and said it was assessing whether to purchase another 10,000.

Prime Minister John Key said the offer related to homes on land that was now unstable due to the constant seismic pounding endured by New Zealand's second largest city in the past nine months, making rebuilding unfeasible.

Geotechnical experts had divided Christchurch into four zones -- red, orange, green and white -- following three major earthquakes since September, including a devastating February tremor that killed 181 people, he said.

Residents in the worst-affected red zone would receive a formal offer from the government to buy their homes in the next eight weeks, Key said.

He said the cost of purchasing the 5,000 homes would be up to NZ$635 million ($517 million) but also suggested the scheme could expand significantly, with the status of about 10,000 homes in the orange zone yet to be determined.

The government wants the homes in the red zone abandoned because the ground on which they are built has been hit by liquefaction, which occurs when seismic tremors break the bonds between soil particles, creating a quagmire.

Christchurch suffered major damage in a 7.0-magnitude quake last September, which was exacerbated when the February 22 disaster brought down office blocks and destroyed much of Christchurch's downtown area.

Pressure from residents for government action intensified after a 6.0 jolt on June 13 caused further damage, including extensive liquefaction. (AFP)