An unidentified American buyer unconditionally bought the vacant 4650sq m section on Frankton Rd for the expected amount earlier this month, Mark Harris, a founding partner of Browns Sothebys International Realty, said yesterday.
The land, zoned residential, was the site of the former 25-roomed Goldfields Motel and was owned by Goldfields Investments Ltd managing director Noel Fitzgerald, of Queenstown and Timaru.
It had been on the market for two or three years.
The site had pre-approval for an 80-room motel or hotel design with club facilities and restaurant.
With its unobstructed view of Lake Wakatipu and proximity to the resort, it had "massive potential", Mr Harris said.
The buyer was "a wealthy American who sees great future potential for New Zealand, and Queenstown specifically. He hasn't any detailed plans for it . . . even sitting on it would be a good investment".
He was also looking to invest in Australia, and snapped up the section, which had been listed by Browns Sothebys for two months, after visiting the resort.
Mr Harris said there were an increasing number of inquiries from the US about long-term "strategic investments" in New Zealand.
Land here was seen as "a safer bet" than saving with American banks.
"They are well-educated, older wealthy Americans who are not happy with the economy and infrastructure and leadership, to a certain extent, of the US," Mr Fitzgerald said.
"It's probably one of the most prestigious pieces of land in Queenstown, but in today's climate, cash is king and obviously the buyer had cash.
Mr Harris and Mr Fitzgerald said they had both signed a confidentiality agreement.
