At the Residential Development Summit, Hon Chris Penk, Minister for Building and Construction, outlined a significant shift in New Zealand’s approach to managing earthquake-prone buildings (EPBs), signalling a move toward a more practical, proportionate and risk-based system.
At the centre of this reform is the Building (Earthquake-prone Buildings) Amendment Bill, which proposes a major reset of how EPBs are identified and managed across the country.
The Minister was clear in his assessment: the current system has become too broad, too complex, and ultimately too expensive. In its place, the Government is seeking to introduce a framework that is more targeted, fair, and focused on where risk to life is greatest.
A shift from broad rules to targeted risk
A key feature of the proposed reform is the move away from a one-size-fits-all model toward a more refined, risk-based approach.
Under the Bill, regulatory focus would shift toward higher-risk building types in medium and high seismic zones, ensuring that effort and investment are directed where they will have the greatest impact on public safety.
The Minister noted confidence that the changes will gain bipartisan support, reflecting a shared recognition that the current settings are not delivering the right outcomes for either building owners or communities.
Why this matters
For the property sector, reform of the earthquake-prone building system is long overdue.
The current framework has created significant uncertainty for building owners, with wide-ranging classifications, inconsistent application, and high compliance costs affecting investment decisions and project feasibility.
A more proportionate, risk-based system will help restore confidence by prioritising the strengthening of the most vulnerable buildings, while avoiding unnecessary cost and disruption for lower-risk assets.
Property Council’s position
Property Council New Zealand strongly welcomes the intent of the Bill and the shift toward a more practical and targeted approach.
Informed by its Seismic Strengthening Taskforce and member feedback, Property Council has consistently advocated for a system that is proportionate, risk-based, and grounded in real-world feasibility.
Property Council’s recent submission to the Transport and Infrastructure Select Committee reflects broad support for the direction of reform, alongside recommendations to refine key aspects of the Bill.
Property Council supports:
- Limiting regulation to medium and high seismic zones
- Removing earthquake ratings, including the %NBS system
- Narrowing the definition of priority buildings
- Enabling EPB owners to apply for remediation deadline extensions of up to 15 years, better reflecting commercial and practical realities
While supportive of the overall direction, Property Council has identified several areas where further clarity and refinement will be important to ensure the system works effectively in practice.
Key recommendations include:
- Establishing a technical advice panel, led by MBIE, to assist with complex or ambiguous building determinations
- Clarifying section 115 so buildings with higher-risk new uses meet appropriate seismic standards, not just minimum requirements
- Ensuring Property Council is included in consultation on the development of the updated earthquake prone building methodology
- Considering a fast-track or simplified assessment pathway for buildings changing ownership during the transitional period
Looking ahead
Our focus, as with many government reforms, is on ensuring effective implementation.
For Property Council and its members, that means continued advocacy to ensure the system delivers clarity, consistency, and confidence across the sector.
The message from the summit was clear: reform is not just necessary, it is an opportunity to reset the system in a way that better balances risk, cost, and practicality while ultimately improving safety outcomes for New Zealanders.
Author | Sandamali Ambepitiya
Sandamali arrived at Property Council with a Bachelor of Arts and Law, and experience as an advisor with the Employers & Manufacturers Association.
Conscientious and detailed, Sandamali leads our advocacy in the South Island region. She is also leading our work on the reform of the resource management and building systems and sustainability / seismic strengthening.
An excellent listener, Sandamali is in her element when facilitating stakeholders and members to develop our advocacy positions.
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