Development represents a huge level of investment, bringing the community jobs and valuable housing, retail and tourism infrastructure.
Lakes Environmental chief executive Hamish Dobbie said development in Queenstown had been hit hard by the global financial crisis.
Building and resource consents fell from peak levels of 1352 and 1612 applications respectively in 2008, to 1142 (building) and 857 (resource), in 2010.
Little improvement has been seen so far in 2011.
At Lakes Environmental, the council's corporate and regulatory arm, staff have been shed because of the decreased demand.
One of Queenstown's development success stories over the past three years has been Millbrook Resort, which has bucked the trends, continuing to grow and sell.
Since 2008, Millbrook has completed its golf course developments, won showroom of the year, been voted in the top 10 spas in the world and began selling properties in the Millbrook West luxury residential development.
However, not all have been so lucky.
Christchurch-based developer David Henderson's ambitious Five Mile project, which aimed to provide a 10,000-home Tuscan-style village, as well as a shopping centre complex, was placed in receivership in July 2008, because of loan defaults.
The proposal, estimated to be worth $2 billion, took its final blow in February 2009, put up for mortgagee sale by international tender. The first receiver's report indicated it owed at least $79.6 million.
Queenstown Gateway purchased stage one (78,000sq m) in November 2009, for $12 million, and stage two (234,000sq m) in August last year, for $27 million.
A development brought back from the brink was the three-stage Kawarau Falls Station.
Construction of the 6.4ha resort began in 2008. It was originally planned to comprise four hotels, 1100 units and 13 major buildings, boulevard-style streets, restaurants and parks.
However, the companies behind the development were placed in receivership in May 2009.
Melview (Kawarau Falls Station) Developments Ltd and Melview (Kawarau Falls Station) Investments Ltd at last count owed $154.8 million to Bank of Scotland International.
Enter the Hilton.
Construction of stage one continued, culminating in June this year in the opening of the five-star Hilton Queenstown and four-star Kawarau Hotel managed by Hilton.
In 2009, Ngai Tahu completed its $55 million Post Office Precinct development in the Queenstown CBD - the end of a 10-year, five-building development.
Also completed in 2009 was the $35 million redevelopment of the heritage Mountaineer building, originally a hotel in the 1880s in Queenstown's gold rush.The $100 million Rees Hotel and Luxury Apartments also opened in 2009.
THE GOOD NEWS ...
• $100 million - The Rees Hotel and Luxury Apartments
• $55 million - Ngai Tahu's Post Office precinct development
• $35 million - The Mountaineer redevelopment
AND THE NOT SO GOOD
• $2 billion - Five Mile
• $154.8 million - Melview (Kawarau Falls Station) Developments Ltd and Melview (Kawarau Falls Station) Investments Ltd's debts to the Bank of Scotland International.
