A Douglas fir estimated to be more than a century old lost its dominance over Stanley St on Monday.
A three-man crew from NZ Tree Care began cutting down the tree in a job that was expected to take several days.
NZ Tree Care manager David Finlan said multiple long leaders had grown as a result of it being topped about 50 years ago.
There were issues in regard to the structural integrity of the union between the regrowth and the trunk.
"It's not imminently dangerous, but it had been identified and monitored over the last few years. There was no pruning the tree to leave it safe and aesthetically pleasing, so the decision was made by the New Zealand Guardian Trust in conjunction with the property owner."
Arborist Jimmy Carling used a chainsaw to cut the tree into manageable segments as the ground area was not large enough for the tree to be felled in one piece.
Mr Finlan reported his recommendations to the trust in 2005 and it was peer reviewed this year, because of the significant age of the tree. Logs would converted into firewood and the rest into mulch.
The removal did not involve the Queenstown Lakes District Council as the tree was on private property and was not subject to a heritage order. The job was publicly notified in the media.
"It's sorry to see a lovely old tree like this, but the decision has been taken over a number of years and they looked at all the options," Mr Finlan said.
"If anything, it brings the other Douglas fir, which is a similar age, into its own right."
Tenant David Marsh said the tree was visibly splitting down the middle.
"It's a great shame, but it's not safe - end of story. Sentiment and emotion have to be put aside because if it isn't taken down, it'll get blown down."
Mr Finlan said there had been a small increase in inquiries from the community about the condition of ageing trees since Queenstown farmer Russell Liggett was killed when a 20m Lombardy poplar fell on his Toyota Hilux cab in high winds one month ago.
"There were 66 poplars in that shelter belt and one failed," Mr Finlan said.
"Is that justification to remove the other 65? I'd say yes if the information proves all those other trees are imminently dangerous. I don't think they are, and the council is now undertaking a more detailed survey."
