Seismic shift: Leonie Freeman, Chief Executive of The Property Council

by Metropol | October 15, 2025 8:33 am

The announcement of an overhaul for the assessment of earthquake-prone buildings is a win for communities, says Property Council chief executive Leonie Freeman.

The Government’s plan to overhaul the assessment of earthquake-prone buildings is a long-awaited reset that addresses the flaws of a regime that has left thousands of buildings empty and communities burdened with unfair costs.

The previous approach, which is centred on rigid percentage ratings under the New Building Standard (NBS), was confusing, disproportionate, and damaging to our towns and cities.

For too long, shifting rules have created uncertainty, paralysing investment and leaving buildings empty across our cities. We’ve long called for seismic standards that are workable, proportionate, and focused on real risk. The old NBS percentage system was 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, despite sitting within the margin of error. The system became fixated on numbers that didn’t reflect real safety. Tenants started demanding 80–100% NBS, despite the law defining ‘earthquake-prone’ as below 34%.

The result was particularly tough on smaller towns. 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.

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.

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.

The 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, 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.

Source URL: https://metropol.co.nz/seismic-shift-leonie-freeman-chief-executive-of-the-property-council/

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