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The recovery of justice services in Christchurch is making excellent progress, Minister for Courts Chester Borrows said during a visit to the city today.

Minister Borrows visited seven Ministry of Justice facilities, including the successful District Court operation at Ngā Hau e Whā marae in the eastern suburbs, and the site of a new central city courthouse.

Local Government Minister Nick Smith and the Christchurch City Council have met today and agreed to the appointment of a Crown Observer to assist the Council.

"The appointment of a Crown Observer onto the Christchurch City Council will help address any governance issues and work to rebuild the public confidence in the Council," Dr Smith says.

Canterbury Earthquake Recovery Minister Gerry Brownlee has today announced the extension of the Government’s buy-out offer to owners of rest homes and retirement villages in Christchurch’s residential red zone.

Mr Brownlee said he was very pleased to be able to make the announcement, as the issue had caused understandable concern to the residents affected.

"This complex matter has been a focus for the Canterbury Earthquake Recovery Authority’s policy team for a number of months, so it's great news that a solution has been found.

Canterbury Earthquake Recovery Minister Gerry Brownlee says today's commencement of construction on the first multi-level building in Christchurch’s CBD since the February 22 earthquake is an important milestone.

"Moments like this need to be recognised," Mr Brownlee said.

"Today's commencement of construction demonstrates a belief in the future of the central city by the building’s owners, and by the tenants they have secured to occupy the building.

The Government has given Canterbury District Health Board the go ahead to develop a business case for rebuilding the city's hospitals.

Health Minister Tony Ryall says the 'modified greenfield' option being considered involves rebuilding most of the clinical wards at Christchurch Hospital including a new acute services wing. It also includes a new specialist centre for older peoples' services at Burwood Hospital.

Canterbury Earthquake Recovery Minister Gerry Brownlee says work is progressing well on a new stadium at Addington in Christchurch.

The facility will host sports matches and outdoor music events, starting with an early season Crusaders home game.

Following a Cabinet decision today a further 1600 homes in the Port Hills area in Christchurch have been rezoned from the white to green zone.

Affected homeowners will be able to clarify their new zoning from tomorrow by visiting www.landcheck.org.nz

A statement will be made by the Canterbury Earthquake Recovery Authority (CERA) when the information has been updated on the Landcheck website, and letters to those residents affected will be mailed to them by CERA tomorrow.