Earthquake-Prone Building
A building assessed as having structural performance below 34% of the New Building Standard (NBS) for earthquake resistance, making it legally earthquake-prone under the Building Act 2004.
What is a Earthquake-Prone Building?
Under the Building (Earthquake-prone Buildings) Amendment Act 2016, a building is classified as earthquake-prone if its seismic capacity is less than 34% of the current New Building Standard (NBS). This means the building is significantly weaker than a new building would be and poses a higher risk of collapse or serious damage in a moderate earthquake.
When a council identifies a building as earthquake-prone, it issues an Earthquake-Prone Building (EPB) notice. The building owner then has a set timeframe to strengthen the building to at least 34% NBS — the timeframe varies by seismic risk area and building priority category, ranging from 7.5 to 35 years.
Earthquake-prone buildings are recorded on a national register maintained by MBIE. The EPB notice must be displayed on the building. Many earthquake-prone buildings in New Zealand are heritage buildings, older unreinforced masonry (URM) structures, and some commercial buildings in town centres.
Note: In December 2025, the Government announced plans to replace the NBS rating system with a risk-based approach targeting specific building types (such as unreinforced masonry). The new legislation is expected to pass in 2026 and take effect around 2029. Until then, the 34% NBS threshold remains the legal standard.
Why It Matters for Due Diligence
Buying a unit or property in an earthquake-prone building carries significant financial and safety risks. Earthquake strengthening can cost hundreds of thousands to millions of dollars, and these costs are typically borne by the building owner (or shared among unit owners via the body corporate). Banks may be reluctant to lend on earthquake-prone buildings, and insurance can be more expensive or limited.
Always check whether a building has an EPB notice. If it does, understand the required strengthening timeframe, the estimated cost of strengthening, and how costs will be shared among owners. Factor these costs into your purchase decision.
How to Check
Check the MBIE Earthquake-Prone Buildings Register (available online) for any EPB notices on the building. The LIM report will also flag earthquake-prone status. EPB notices must be displayed on the building itself. Ask the body corporate or building owner about any seismic assessments that have been done and any strengthening plans or cost estimates.
Frequently Asked Questions
Can I get a mortgage on an earthquake-prone building?
It's difficult. Many banks won't lend on earthquake-prone buildings, or will only lend at lower loan-to-value ratios with higher interest rates. Some banks will consider lending if there's a concrete strengthening plan in place with a confirmed timeline. Shop around and get pre-approval before making an offer.
How much does earthquake strengthening cost?
Costs vary enormously depending on the building type, size, and required level of strengthening. For a small commercial building, costs might be $200,000-$500,000. For a large apartment complex, the total can run into millions — though this is shared among unit owners. Always get professional engineering cost estimates before committing to a purchase.
Related Terms
New Building Standard (NBS)
GlossaryA percentage rating that expresses an existing building's earthquake strength relative to the minimum standard required for a new building — 100% NBS means the building meets the current code for a new build.
Liquefaction
GlossaryA phenomenon where saturated, loose soil loses its strength during an earthquake and behaves like a liquid, causing the ground to shift, sink, or eject sand and water.
Fault Line
GlossaryA geological fracture in the earth's crust where two tectonic plates or rock masses meet, and where earthquakes are most likely to occur.
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Building Code
GlossaryThe New Zealand Building Code — a set of minimum performance standards that all building work must meet, covering structure, fire safety, moisture, energy efficiency, and accessibility.
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