Minister for Land Information Damien O’Connor sealed the deal, along with Christchurch Mayor, Phil Mauger, more than a decade on from the quakes.
"It's the final stage of quite a long process, one that hasn't been easy, but it's been necessary," Mr O'Connor said.
Following the 2010/2011 earthquakes, the Crown and insurers obtained the properties through voluntary buyouts, demolishing or removing more than 8,000 houses, ranging from the Waimakariri across to the Port Hills.
The Minister acknowledged the thousands of former residents that still have an emotional connection to the land.
Mayor Phil Mauger said a number of development projects for the abandoned residential land were already underway.
"In the next 12 months, we're going to be busy. Work on the [City to Sea] pathway will begin. The upper and lower terraces of Avon Park just around the corner will be transformed and planning work will progress for the new Flatwater Sports Hub and riverside landing at Kerrs Reach."
Official guests finalised the deal with a walk along the newly formed Ōtākaro Avon River Corridor, signalling a new era for this neglected part of the city.
- Geoff Sloan, Public Interest Journalism funded through NZ On Air