Developer WFH Properties Ltd has lodged an application with the Queenstown Lakes District Council, asking for consent to develop 278 residential lots in Pembroke Heights, about 2.5km northeast of the town centre.
The 37.2ha site sits within the Northlake Special Zone, an area the council designated in 2015 to provide 1600 lots of predominantly low- and medium-density housing.
District deputy mayor Quentin Smith, of Wānaka, said further development at Northlake had been accounted for by the council.
"It’s anticipated by the district plan, and there’s no real surprise there," he said.
"It’s good that it’s integrated into the design and layout."
The council had invested in a new reservoir and upgraded wastewater connections at Northlake, in anticipation of further development in the area, Mr Smith said.
"The downstream impacts on roading are somewhat a concern, and the impacts on Anderson Rd, and also people coming in and out of Northlake will certainly add to the congestion there."
He did not think the consent would be publicly notified.
"If it’s anticipated by the zone and it’s within the rules of the zone, there’s no reason for it to be notified."
The consent, lodged with the council in December, also proposes a future development lot in the southwest corner of the site, which could be used as a roading link to Aubrey Rd.
WFH Properties is co-owned by Danne Mora Holdings and Fulton Hogan Land Development.