Deal with Heritage Buildings the Sane Way

26 November 2013

Deal with Heritage Buildings the Sane Way

The staggering strengthening costs of Wellington’s Old Public Trust Building is yet another example of the impractical laws governing heritage buildings and their impediment to growth.

Media have reported the iconic building’s latest rating value sitting at nearly $6.10 million. A report has put the cost of upgrade and strengthening work at a staggering $9.4 million.

This is a tragic case of a true, blue Kiwi building situated in the Capital’s prime location being too expensive to upgrade for its owners – forcing a sale.

While public safety is at the forefront of Property Council’s concerns, Wellington Branch president Andrew Hay says the requirement to meet >33% New Building Standard (NBS) puts crushing pressure on building owners to upgrade.

‘It does not make sense for upgrades costing more than the actual compliant building value to be feasibly undertaken. Why would anyone want to spend more money upgrading than what the property is actually worth?’

‘This is yet another key building in the Wellington CBD, such as the Harcourts building, which cannot be demolished, nor can it be occupied’ Mr Hay continued.

Property Council reiterates the need for another look at the NBS requirements as many owners will have the desire but not the financial freedom to alter their heritage properties.

This will inevitably lead to ‘demolition by neglect’ and owners will be forced to board up buildings in prime locations due to the gap in feasibility of upgrades.

The consequence will be devastating outcomes for the city’s commercial property market, slowed economic growth, serious urban design setbacks and increased hazards to the wider public through the neglect of structures identified as earthquake risks.

Where society identifies economic and aesthetic benefit in the retention of key heritage structures, the wider community needs to be party to the cost of their retention, rather than an unrealistic expectation that individual owners meet costs beyond their means.

About Property Council New Zealand
Property Council is New Zealand’s commercial property voice. Property Council represents New Zealand's office, industrial, retail, property funds and multi-unit residential property owners, investors and managers. Property Council’s branches throughout the country represent some of the largest commercial property portfolios in Auckland, Waikato, Bay of Plenty, Wellington, East Coast/Hawkes Bay and the South Island and Otago region, the value of which exceeds $30 billion.

ENDS

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