Up front: Club O already has permission to rebuild from the government. And Club O is not (currently, as least!) for sale.

I suspect the difference between residential vs. temporary housing (i.e. someone staying in a hotel) is that people staying temporarily are going to be easier to evacuate. We know that here in the US we have, with alarming regularity, people refusing to evacuate in the face of an oncoming storm because they want to "protect their home". At some level I understand the impulse to protect the homestead. Honestly, I'm still massively P.O.ed that the parts of Club O that survived the storm were looted because there was no one around to protect it. Still, lives are more important!

Is this unfair to those who have lived on a patch of land for generations that is marked as red zone? Yeah. And this isn't an easy thing. We have this same issue in the US where Federal Flood insurance pays to rebuilt houses that will be destroyed again in the next decade or so. It's very sad when people can't rebuild. On the other hand, the government catches flack when they can't save people who have stayed behind...