NZ Earthquake-Prone Building System Sees Major Reform

New Zealand's earthquake-prone building system is undergoing significant reform, thanks to legislation unanimously passed in Parliament. Building and Construction Minister Simon Watts says the changes will prioritize life safety while saving communities billions of dollars in remediation costs.

The reforms aim to remove around half of all buildings currently designated as earthquake-prone from the system, which is expected to save Kiwi building owners and the New Zealand economy a staggering $8.2 billion. Watts notes that expensive and often unrealistic remediation costs can lead to buildings becoming derelict, but the new legislation will enable money to be invested elsewhere.

The updated seismic zones, based on the latest scientific knowledge, will take effect the day after Royal Assent. Buildings in Auckland, the Chatham Islands, and parts of coastal Otago and Stewart Island will no longer have earthquake-prone building (EPB) status, while remaining EPBs will have more cost-effective remediation requirements.

Guidance materials are currently being developed to support implementation, which is scheduled for July 1, 2027. The Ministry of Business, Innovation and Employment (MBIE) plans to publicly consult on these materials before the end of the year.