Changes cut earthquake upgrade costs

The Government has announced big changes to New Zealand’s earthquake-prone building rules, and they’re good news for property investors, especially in Franklin, South Auckland and North Waikato. The goal is to make the system simpler, fairer and far less expensive.

The main changes are:

• Fewer buildings will be covered. Only larger concrete buildings (three storeys or more) or those with unreinforced brick or masonry will usually need work. Many smaller buildings will no longer fall under the rules.

• Auckland and Northland will be removed from the system completely. In smaller towns, some lower-risk buildings won’t need full strengthening — just basic safety work on façades.

• No more automatic upgrade requirements. Owners won’t have to combine earthquake work with expensive fire safety or accessibility upgrades, which often made projects cost far more.

• More time to do the work. Councils will be able to give building owners up to 15 years to complete strengthening, helping spread costs over time.

The Government estimates these changes will save building owners over $8 billion nationwide. For investors in our region, this means much lower capital costs, fewer unexpected bills, and less risk of buildings losing value because of earthquake issues.

It’s still worth getting professional advice to check whether your properties are affected under the new rules. But overall, the changes mean many investors can avoid expensive upgrades, plan more effectively, and focus their capital where it matters most.

Lincoln Sharp, Director

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This article contains general information only and based on information available at the date of publication. You should obtain advice for your personal circumstances.