A state of emergency has been declared in New Zealand's second largest city of Christchurch after a powerful 7.1 magnitude earthquake.
The earthquake caused widespread devastation and officials said it was 'extremely lucky' no one was killed.
Initial estimates have put the damage at up to €1.12bn as buildings collapsed, gas, water and sewage lines were ruptured, some bridges became impassable and electricity supplies were cut.
Frightened residents fled their homes to find streets covered in rubble and glass, but despite the extent of damage only two people were seriously injured in the city of 340,000 people.
The quake struck just before dawn when few people were on the streets as building facades crashed to the ground, crushing parked cars and showering the roads with shattered glass.
People were warned to stay away from damaged buildings for fear of further collapses as severe aftershocks continued to rock the city.
Prime Minister John Key flew to the city to survey the scene and support residents.
Mr Key said: 'We are not going to let Christchurch suffer this great tragedy on its own.'
'I think we've been extremely lucky as a nation that there's been no fatalities ... we're blessed actually,' Civil Defence Minister John Carter said after being briefed on the impact of the quake.
He described it as a 'significant disaster' and urged people 'don't panic' as strong aftershocks continued throughout the day.
Christchurch Mayor Bob Parker said he was 'horrified by the amount of damage', which daylight showed was considerably worse than first thought.
'We've decided to declare the state of emergency in the city. It just makes it a bit easier for us now to move people out of buildings if necessary, close streets down,' Mr Parker announced on national radio.
'There would not be a house, there would not be a family in our city that has not in some way have damage done to their person, to their property.
'I think it's like an iceberg; there is ... below the visible line, significant structural damage.'
The quake, initially recorded at a magnitude of 7.4, struck at 4.35am (5.35pm Irish time) at a depth of 5kms some 45kms west of Christchurch, the US Geological Survey said.
