Construction of the $10 million Alta Queenstown development at Remarkables Park is expected to be finished by July.
All 16 of the two- and three-bedroom townhouses being developed by Twenty Twenty Partnerships sold off the plans.
Managing director Phil Brown said the medium-density housing being built was ''under-supplied in Queenstown''.
''The local community has been very interested in this form of housing. There is a demand for medium-density living that is created with the end user in mind.''
Twenty Twenty Partners is involved in several residential developments nationally, including a retirement village north of Wellington and Union Green, a planned townhouse and apartment complex in Auckland.
Mr Brown said given the high level of interest in Alta, it was likely the company would look to create another similar development in Queenstown.
RCG, a property, architecture and research company, created the master plan for the site and designed the homes, which are being built by Naylor Love.
Principal architect John Lenihan said the aim was to strike a balance between density and suburbia.
''Alta appeals to people because it maintains a suburban scale with individual freehold titles, and has the feeling of a neighbourhood, something that is difficult to achieve.''
