The Queenstown Lakes District Council (QLDC) confirmed the sale of the final block of its commonage land at the base of Queenstown Hill late yesterday.
The 9.7ha block off Vancouver Dr is intended for residential development.
It is the last remaining portion of a much larger area that was vested in the council by central government in 1971, the balance having been sold in sections since then.
QLDC property director Roger Davidson said it was a positive outcome for ratepayers.
"Less than two years ago this property was valued at between $25m and $29m and hence the final sale price represents an excellent result," he said.
"We had considerable interest in the property after it was offered to market in 2023, both locally and from further afield, and are pleased to confirm that the contract is now unconditional with a New Zealand-based purchaser with existing local interests."
Queenstown Lakes District Mayor Glyn Lewers said the sale reflected the council’s vision to invest in local infrastructure.
"The current QLDC long-term plan is centred on the urgent need to address key infrastructure challenges for our rapidly growing district, especially those outlined in central government’s Local Water Done Well proposals.
"This sale of council’s remaining commonage land will not only help to enable this investment but will also boost the local economy through the construction of new housing," he said.
QLDC partnered with real estate agents Colliers Queenstown on the sale.
Queenstown Lakes Community Housing Trust chief executive Julie Scott said it was "far too early to tell" whether the sale and eventual development of the land would lead to more affordable housing, rather than just more housing.
This was the council’s third attempt at selling the land.
The council attempted to dispose of the land in 2017 and 2021, but on both occasions was unsuccessful.
In 2018, the Otago Daily Times reported the land attracted more than 80 inquiries and five formal purchase offers were made, but it was taken off the market after a suitable deal could not be reached.
Most of the commonage land, entrusted to the council in 1971, was developed between 1975 and 2002, providing residential dwellings across Belfast Tce, Kent St, Manchester Pl and Edinburgh Dr. So far, about 30ha of the commonage land has been developed.
A council spokesman said the buyer of the final commonage block would reveal more details shortly.
