Property Council New Zealand has welcomed the passing of the Building (Earthquake-prone Buildings) Amendment Bill, describing it as a landmark reform that will give thousands of building owners and communities a clearer, more proportionate way to manage seismic risk.
The legislation marks the culmination of seven years of sustained Property Council advocacy and replaces the existing percentage-based earthquake-prone building system with a more targeted, risk-based approach.
“This is a landmark day for our sector and for the towns and cities we help shape,” says Property Council New Zealand chief executive Leonie Freeman.
“For seven years, our members have told us the same thing: the old system created more confusion than clarity. It undermined confidence, constrained investment and, in some cases, left otherwise viable buildings facing an uncertain future.
“Seismic safety matters. But the way we manage it needs to be proportionate to the actual risk. Today, Parliament has recognised that.”
The legislation removes the New Building Standard percentage rating from the earthquake-prone buildings system and introduces tiered mitigation requirements based on building type and seismic risk.
The new system will focus regulatory requirements on higher-risk building types in medium and high seismic zones, while Auckland, Northland and the Chatham Islands will be removed from the earthquake-prone buildings system altogether.
Freeman says removing the percentage rating is one of the most significant changes.
“For building owners, tenants, lenders and insurers, the percentage rating had become far more than a technical assessment. A difference of just one or two percentage points could affect whether a building was occupied, insured, financed or invested in, despite sitting within the inherent uncertainty of the assessment.
“The percentage was too often treated as a precise measure of safety when it was never designed to provide that level of certainty. This reform puts the focus back where it belongs: understanding and managing actual risk.”
The Government estimates around 2,900 buildings will be removed from the earthquake-prone buildings system altogether, with requirements reduced for a further 1,440 buildings. It estimates the reforms will save building owners approximately $8.2 billion.
Freeman says the significance of the reform extends beyond individual property owners.
“This isn’t simply about the cost of strengthening buildings. It is about whether investment continues to flow into our towns and cities, whether heritage and character buildings have a viable future, and whether communities can continue to use and enjoy the buildings around them.
“A more proportionate system gives owners greater confidence to make sensible, long-term decisions about their assets.”
Property Council’s Seismic Strengthening Taskforce has worked closely with members over several years to bring practical experience of the existing system to ministers, officials and the select committee.
“This reform has been shaped by people who live with the consequences of these rules every day,” says Freeman.
“Our members have contributed countless hours through workshops, submissions, technical feedback and direct engagement with government. Their evidence and persistence helped demonstrate why change was needed, and I want to acknowledge everyone who has contributed to getting us to this point.”
Property Council says attention must now turn to the technical methodology that will determine how the new framework operates in practice.
“Passing the Bill is a huge milestone, but legislation is only part of the equation. The methodology sitting underneath the new system now needs to deliver on the promise of the reform.
“The test will be whether we end up with a system that is practical, consistent and genuinely reflects risk. Our members have enormous technical and real-world expertise to contribute, and we intend to stay closely involved as that detail is developed.”
Public consultation on the earthquake-prone buildings methodology is expected to open in October 2026 and run for approximately six weeks. Property Council has advised the Ministry of Business, Innovation and Employment that its members are ready to contribute to the next phase of the reform.