In our inaugural episode of The NZ Narrative, part of the JLL Perspectives podcast series, moderator Aimee Baker, NZ Lead, Project and Development Services and Matt Bishop, Founder and Principal, Brevity and Fabio Pagano, General Manager, Oyster Property explore the government announcement for earthquake prone buildings and the regulations that govern them.

New Zealand's commercial property sector is experiencing a seismic shift - not from tectonic activity, but from groundbreaking legislative reform. Recent government announcements promise to transform how the country approaches earthquake-prone buildings, moving away from the complex percentage-based New Building Standard (NBS) system toward a more targeted, risk-based approach.

For over 15 years, property owners have grappled with an increasingly complex regulatory framework that emerged from the Canterbury earthquake sequence. The current system's blanket approach has often required millions of dollars in upgrades with minimal tangible safety improvements - a frustrating reality for building owners and their tenants alike.

"We've seen buildings go from 100% NBS to 34% literally months later due to changing regulations," explains Fabio Pagano, General Manager of Property at Oyster Property. This volatility has stifled investment, particularly from offshore investors wary of unpredictable compliance costs.

The proposed changes represent a fundamental philosophical shift. Rather than treating a building in Auckland the same as one in Wellington, the new framework focuses specifically on life safety risks, particularly for unreinforced masonry buildings and facades that pose public safety hazards.

Engineering expert Matt Bishop from Brevity highlights the significance: "We're moving from a calculated, nuts-and-bolts approach on every building to focusing on what actually causes life safety issues. This opens opportunities for faster, more cost-effective statistical approaches used successfully overseas."

The reforms promise to remove approximately 3,000 buildings from the earthquake-prone register while making remediation significantly more affordable for another 1,500 properties. For markets like Auckland, Northland, and the Chatham Islands, buildings will be completely removed from the Act - a substantial change that could unlock previously stalled investments.

However, the transition won't happen overnight. Tenant expectations, lease obligations, and insurance considerations will need time to adapt to the new framework. Property owners are advised to pause non-critical seismic work where possible and engage with engineering consultants to understand how these changes might affect their portfolios.

With draft legislation underway and implementation by mid-2027, the industry has time to prepare for this welcome simplification. The focus on genuine life safety over academic compliance promises to free up capital for other critical building improvements, including sustainability and climate resilience - increasingly important considerations in today's property market.

Want the full story? Watch the complete discussion featuring in-depth insights from industry experts on navigating this regulatory transformation.
https://www.youtube.com/watch?v=7CdNE2j9ALY