Surrounded on three sides by Millbrook Resort, the 14.72ha site features the Mill Creek Waterfall cascading down the property, which is split over three titles.
Waterfall Park was zoned to include up to 100 residential units in 2003, after Haka Pa Queenstown tourist venture operaters Pan Tai Holdings Ltd sought resort zoning. However, an A-frame building constructed in 1975 remains the only residential structure on site.
Bayleys Real Estate managing director David Murray said interest had been "reasonably quiet" until the past couple of months.
He put the "revival of interest" down to people keen to get back into the property market with the economic situation looking up.
"I think people are realising there's a very limited number of development sites, so with the economy gradually getting up off the floor, Queenstown is Queenstown and this will not be around for too long," Mr Murray said.
A report submitted to the Queenstown Lakes District Council's strategy committee meeting on Tuesday outlined the extent of the area's other resort-zoned developments, Millbrook and Jacks Point.
Millbrook has constructed about 175 residential units, with room for a further 275, while 70 residential units have been built at Jacks Point and 660 residential lots created.
