The Earthquake Recovery Minister Gerry Brownlee is confident there will be demand for $900,000 apartments in Christchurch's Central Business District.

Fletchers Living has been selected as the preferred developer to build an
$800 million East and North Frame precinct, with almost one thousand new homes.

The partnership will see Government recoup the money it has spent on the land.

Brownlee said they expect the homes to be priced between $400,000 and $900,000.

"You've got a lot of million dollar houses here that are selling, but I think it is important that we have - given that this boarders the CBD - high quality housing, albeit of a fairly dense nature."