Source: Property Council New Zealand
Property Council New Zealand has welcomed the Government’s announcement to overhaul the assessment of earthquake-prone buildings, calling it a long-awaited reset that addresses the flaws of a regime which has left thousands of buildings empty and communities burdened with unfair costs.
Chief Executive Leonie Freeman says the previous approach, centred on rigid percentage ratings under the New Building Standard (NBS), was confusing, disproportionate, and damaging to towns and cities across the country.
“For too long, shifting rules have created uncertainty, paralysing investment and leaving buildings empty across our cities,” Freeman says. “We’ve long called for seismic standards that are workable, proportionate, and focused on real risk. Today’s announcement is a step in the right direction.”
She describes the old NBS percentage system as arbitrary, with small variations creating major consequences for owners and tenants. “The difference between 66% and 67% NBS could mean whether a building was occupied or left vacant, even though it sits within the margin of error. The system became fixated on numbers that didn’t reflect real safety, while ratings swung every time the rules shifted. It’s no wonder tenants started demanding 80–100% NBS, despite the law only defining ‘earthquake-prone’ as below 34%.”
The result, Freeman says, was particularly tough on smaller towns. “The previous cost burden caused huge disruption in regional towns where remediation simply didn’t stack up. Many owners faced bills in the millions, with no clear pathway forward. Instead of strengthening, buildings were abandoned, becoming derelict and putting communities at greater risk.”
Freeman says the new system finally recognises the need for a more targeted, risk-based approach. “The old regime was like forcing every car to replace its engine every 10 years, regardless of condition. The new approach inspects each car on its age and state of repair, fixing only what needs attention. It’s smarter, it’s fairer, and it focuses on genuine life-safety risks.”
She says the changes will deliver more targeted, practical outcomes. “Recognising that not all regions face the same level of risk is common sense. It allows us to focus resources where they’re needed most – in high-risk areas like Wellington and Napier – while avoiding unnecessary costs in lower-risk regions.”
Property Council has long advocated for a two-tier system that enables greater clarity in seismic decision-making and more stable rules, including a longer review cycle for regulation. While a 20-year review cycle was not adopted, Freeman says it remains an important goal.
“Shifting seismic standards every few years doesn’t just hurt property owners, it undermines communities. We’ve seen schools relocated into temporary classrooms, small businesses forced to close, and billions of dollars in stalled investment because the rules kept changing. Japan has shown us that stable rules give owners, engineers, and investors the confidence to plan long-term. New Zealand should be no different.”
Looking ahead, Freeman says the reset is a positive step for the property industry and the communities it serves.“Ultimately, the number one priority is safety for our communities. With safe buildings backed by scientific evidence, clear rules, and long-term confidence, we can get our towns and cities thriving again.”
