The 0.8ha site off the end of Caledonian Rd has a coastal vista south to Cape Wanbrow, and is located east of the Main Trunk Railway.
A sharp-eyed local resident contacted the Otago Daily Times last week, noting contractors had just installed a new rising sewer main connecting the site to the Oamaru system further west on Caledonian Rd.
The man said he understood a developer had plans "to put 34 to 36 units" on the site.
The Waitaki District Council confirmed that Christchurch company Sunshine Housing Ltd was granted a resource consent in October 2023 to subdivide the site.
It consists of two lots which combined are 8094sq m.
The subdivision was granted on a non-notified basis, conditional on a small existing building being removed.
The site also has a 1915-built house.
Sunshine Housing Ltd undertakes design and build work, and has been registered to an Upper Riccarton address in Christchurch since 2006.
Director Ying Shi said their plan a few years ago was to develop "an accommodation park" on the site for tourists.
"However, due to significant changes in the market and the high construction costs over the past few years, we haven’t finalised any plans yet," she told the Otago Daily Times.
"What we can do now is to complete all the necessary application work for this property to enhance its value.
"Previously, the land had no sewage facilities, which made any development impossible."
Ms Ying said the sewage connection followed "a long and complex application process" before the necessary permits.
Further options for the site were still being weighed and she did not confirm if they intended a series of 1-bed units.
"As for future plans, they are still under consideration. Once we make a decision, we will follow the relevant procedures for approval," she said.
The district council consent decision of September 2023 notes the site is in "a coastal erosion area".
A report for the application said the subdivision did not exacerbate the erosion hazard.
But anyone wishing to build on the second lot, closest to the sea, might examine the erosion rate "in terms of the likely fate of the site".
On that basis, the consent decision said any future development would need to confirm the impact coastal erosion "may or may not have" on the property.
The site is zoned for business purposes, and is opposite roading contractor South Roads.
Sunshine Housing on its website describes itself as operated by NZ Chinese based on traditional values of "diligence and dedication" with deep-rooted virtues of modesty and courtesy in serving its client base.
