Real Estate Institute of New Zealand Central Otago Lakes District spokesman Adrian Snow said few development projects were able to continue as the financing and credit world continued to "sort out their woes".
"Until they do so, there appears to be almost no funding, even for good, well planned and feasible projects.
"This retrenchment in the development sector suggests that a constriction in supply for future land, homes and commercial property may well be imminent," he said.
His comments came in the REINZ sales report for Queenstown, including the Wakatipu Basin, for June.
Recorded sales for last month continued May's "encouraging" trend, which reinforced suggestions of market stability.
"June is always regarded as seasonally quiet and, surprisingly, June 2008 is very comparable to June 2007 with respect to dwelling sales."
Arrowtown reported an active month, with six dwelling sales and good buyer inquiry but few properties available for sale.
Queenstown's agents reported "reasonable" buyer inquiry, with buyers "taking their time in making their buying decision" and a growing pool "looking for bargain buys".
"Fundamentally, the confidence in real estate by both purchasers and owners appears good, but initiating action is the challenge facing real estate agents today.
"Pricing of properties remains under downwards pressure, with only a few exceptional properties being able to maintain peak of market pricing."
Mr Snow said mortgagee sales had increased over recent months, but no statistics on mortgagee sales were kept.
Off-shore buyer interest remained "well down" as buyers awaited a currency change, but the Australians were continuing to show faith and remained "active and dominant" among off-shore purchasers, he said.
"Opportunities for purchasers continues to be the best the Queenstown market has offered for many years."
Queenstown appeared to be "bucking the national trend" with sales comparable to June 2007.
