Recovery efforts

From Cyclone Gabrielle to the Mangawhai tornado and Nelson-Tasman floods, New Zealand has experienced a wave of damaging weather events in just a few short years. The economic toll is mounting; Gabrielle alone caused an estimated NZ$14.5 billion in losses.

And in Christchurch, more than a decade on from the earthquakes, the rebuild continues to shape building standards and buyer behaviour across the country.  

The Insurance Council of New Zealand reports that insured weather-related losses have tripled in five years, while IAG’s 2025 Wild Weather Tracker shows 41% of New Zealanders have been directly affected by natural hazards in just the past two.  

These local events reflect a global pattern. In 2024 alone natural disasters caused an estimated US$137 billion in global economic losses, according to Swiss Re. Most were weather-related: storms, floods and cyclones among the most damaging events. 

Together, these patterns underscore the increasing volatility of New Zealand’s climate - and its growing consequences for housing, infrastructure and high-value property. From coastal erosion in Hawke’s Bay to the future viability of flood-prone suburbs in Auckland, natural disasters are not just changing landscapes - they’re reshaping conversations about risk, resilience and what constitutes ‘value’ in a home. 

Nowhere is this more evident than in the premium real estate market, where resilience now defines the high-end brief. For many homeowners, investors and developers, the aftermath of recent storms is prompting more than just repairs. It's triggering a shift in how and where they build.  

Peace of mind has now become part of the premium property brief,’ says Pene Milne, Luxury Residential & Waterfront Specialist, Auckland.

‘Even in the luxury market, where confidence is usually high, stability and peace of mind have become just as important as location and design.’ 

When disaster strikes, affected homeowners face one of three paths: rebuild as before, rebuild smarter or relocate entirely. Each option impacts housing inventory and high-end home prices differently.

Rebuilding or upgrading slows the return of homes to the market, limiting supply and potentially driving up prices. Relocation can shift demand to new areas, putting upward pressure on prices in less-affected, high-demand regions.  

We explore how these three options are reshaping decisions at the top end of the market. 

Restoring a property to its original state 

For many homeowners, rebuilding to the original specification, but often to meet tightened building codes, offers a sense of normality and emotional closure. It’s often seen as the most straightforward path - especially if insurance coverage is sufficient and the site remains zoned for residential use. 

In the years following the Christchurch earthquake, many homeowners in affected areas chose to restore their homes as they were.

‘People generally just wanted their homes back the way they were,’ says Rosa Carter, Managing Director - Canterbury. ‘What owners can do is totally dependent on their insurance policy.’

After the 2023 floods in Auckland and Hawke’s Bay, affected properties were grouped into three categories. Category 1 land is generally safe to rebuild on, though owners might still need to raise the floor level or improve drainage. Category 2 sites come with higher flood risk and need major work to make them safe. Category 3 land is considered too risky to rebuild on at all.  

For some owners, bringing damaged homes up to code has produced an unexpected advantage in today’s market.

Jacqui Taylor, Sales Associate - Napier, says: ‘For an architect-designed home that got “wet feet” and has been fully remediated, you’d never build that house for what you can buy it for now - the cost of building would be around $8,000 a square metre.’

A parallel emerges in Christchurch’s as‑is market, where zoning and location underpin end value. ‘Un‑repaired, quake‑damaged properties have been in demand since day one,’ says Carter.

‘Developers strip them back to framing and repair them, or if they’re on higher‑density land they might demolish and rebuild as units or townhouses. If they’re in a blue-chip area, there is no hard cap on the end value.’ 

Rebuilding smarter 

Globally, a 2025 Wall Street Journal report notes luxury buyers are still moving into climate-risk zones - but only if resilience is built in.  

Rebuilding after disaster is now an opportunity to build smarter. Following Christchurch’s earthquakes, Auckland’s 2023 Anniversary Weekend floods and Cyclone Gabrielle, resilience has moved from optional to essential. 

In areas recovering from natural disasters, new homes are being designed with features like elevated platforms, engineered stormwater systems, closed-cell insulation and flood-tolerant landscaping. 

Auckland Council’s Risk Categorisation framework, developed in line with national guidance after the 2023 floods, helped assess not just the damage that had already occurred, but the risk of future flooding too. While the local programme formally ended in 2024, it continues to influence how insurers, councils and buyers view flood-prone areas - especially when it comes to rebuilding decisions and long-term value. 

‘Waterfront and lifestyle homes at the upper end of the market have benefited from these measures, if anything,’ says Winston Kidd, Branch Manager - Auckland North.

‘When buyers can confirm details such as stormwater management, insurance cover or historical property information from the outset, it gives them confidence.’ 

In the city's premium residential sector, resilience-led design is increasingly influencing how new homes are conceived and built - particularly on sites prone to environmental risk such as coastal edges, flood plains or unstable ground.

Measures like elevated floor plates, low-profile or embedded forms to resist wind and erosion, deep foundations, and strategic siting are being used to mitigate environmental exposure. 

Milne notes: ‘Some of the greatest challenges didn’t come from low‑lying waterfronts, but from cliff‑top homes where sections of land gave way, leaving houses unsafe or untenable. That’s had a real impact on buyer perception. Buyers are now looking closely at land stability and engineering reports. Elevated areas are still appealing, but ridgelines with proven stability, and homes with strong infrastructure and stormwater management, are drawing the most confidence.’ 

This type of future-proofing not only helps protect the asset but also enhances its value, liveability and appeal to increasingly climate-conscious luxury buyers. 

In Canterbury ‘it’s 100% about foundations. Above‑ground is standard code; foundations determine the amount of reinforcing and height, and you overlay flood‑zone requirements for floor levels like anywhere in the country,’ says Carter.

‘With new builds, buyers aren’t dealing with historic floor levels or drainage cracking. Starting from scratch is the appeal of post‑quake homes and why they command a premium.’ 

Taylor adds: ‘Napier Hill, Bluff Hill, Esk Hills and the Taradale hills - a lot of the high-end properties are on the hills where slips were the major problem. I’ve seen homes with geotechnical remediation ground works done and once the engineering’s done, they’re probably stronger than anything.’ 

Nelson–Tasman, where 2022 and 2023 flooding events caused substantial property damage, offers a clear snapshot of New Zealand’s shift toward climate-aware property decisions.

“We’re seeing owners take resilience seriously,” says Steve Kelso, Managing Director - Nelson Tasman.

“On the flats they’re doing things like retrofitting drainage systems and raising floor levels, and on the slopes, owners are doing work to stabilise the land like improving drainage, replanting and getting proper engineered retaining structures.” 

These priorities are increasingly reflected in architectural firm portfolios and design award submissions, signalling a shift from aesthetics alone to long-term resilience. It’s a clear sign that in the luxury space, future-proofing is now just as important as style.  

Relocation and migration shifts

Some property owners are choosing to move entirely. In many cases, moving just a short distance can provide a safer living environment, while maintaining proximity to familiar surroundings. 

‘A small number of clients have chosen to make a move, often driven by lifestyle changes as much as resilience considerations. For example, some North Shore homeowners have transitioned to Rodney lifestyle blocks, attracted by space, elevation and a different pace of living. Their motivations vary; some prefer the reassurance of being further inland,’ says Kidd.

‘Coastal access and lifestyle appeal are still highly valued, but many buyers now also see elevation and robust infrastructure as desirable features.’ 

This shift in behaviour has an impact on real estate markets and underscores the growing influence of climate change on where and how people choose to live, with some regions already seeing shifts in buyer preferences and housing demand. 

‘Buyers who are more risk‑averse are looking to the ridgelines and hill suburbs,’ says Taylor. ‘There’s no new land up on those ridgelines - it’s established housing stock so there is healthy demand in the market for those homes.’ 

Around Nelson-Tasman 'demand has tilted toward elevated suburbs such as Britannia Heights, The Brook and Atawhai, as well as inland lifestyle areas like Upper Moutere and Mahana—locations that blend outlook with a perception of safety,' says Kelso. 

But an equally important cohort is choosing to stay put and rebuild. Deep ties to schools, communities and amenity - and the availability of post-quake/post-flood building methods - are keeping many owners anchored to their neighbourhoods.

As Carter puts it: ‘Take top‑end area Scarborough Hill where the views are incredible. If you’ve always been on the hill you will stay on the hill. Modern engineering makes it possible - it’s expensive but these owners have the means.’ 

Indeed, buyer sentiment for premium homes in sought‑after areas has not dampened, but the due‑diligence lens is now much sharper.

‘High‑end buyers are more precise than ever - stormwater design, flood maps and insurance history are now routine before they make an offer,’ says Milne. 

Conclusion; the new luxury 

In a climate-defined future, resilience is not an add-on - it’s part of the luxury package. Whether homeowners rebuild, relocate or reimagine, premium property is being reshaped by durability, design and peace of mind.