Seismic risk mitigation behaviours among building owners

Overview

In this MBIE-commissioned project, we mapped what motivates, hinders, and influences building owners to adopt seismic risk remediation. We profiled 5 building owner groups and 7 stakeholder groups who influence building owner seismic remediation behaviours, including lenders, insurers, lawyers, real estate agents, professional services (architects and project managers), public organisation tenants, and residential tenants.

The study found that the potential for market returns for more resilient buildings (e.g., rental benefits, resale value) can be powerful motivators for some building owner groups such as those owning large commercial buildings. However, these economic benefits are unlikely to exist for residential apartment owners and small commercial property owners.

Lenders and insurers play a key role in driving remediation through the seismic performance requirements they set, which are often over and above those required by legislation. While these requirements promote enhanced seismic resilience for building owners who can access finance, it creates additional remediation barriers for those who don’t. The study also highlights that seismic building risk is often borne by those who have limited choice on the risks that they take, such as residential tenants and small business tenants.