Queenstown Fast-Track Projects: 2,800-Home Suburb Approved, Gondola Plan Questioned

Two fast-track housing developments are poised to reshape Queenstown, with the approval of a 2,800-home lakeside suburb and the referral of a gondola and chalet plan that has drawn local opposition.

RCL Homestead Bay’s 205-hectare proposal near Lake Wakatipu and State Highway 6 has been signed off by a fast-track consenting panel following an application lodged in June 2025. Housing Minister Chris Bishop said the project would “make a real difference” to one of the country’s toughest property markets. It is expected to deliver around 2,800 homes alongside a new retail precinct, generate an estimated $720.3 million boost to GDP, and support about 4,420 construction jobs.

“The median sales price in Queenstown is around $1,000,000 higher than the rest of New Zealand,” Bishop said. “The supply of more affordable homes has not kept up with growth. This means long-term residents and temporary workers struggle to find affordable homes.”

The development has been designed with its own wastewater systems, which could later be integrated into the local council network. The Homestead Bay sign-off is the 10th project to clear the government’s fast-track process.

Meanwhile, Infrastructure Minister Chris Bishop accepted a separate referral from Bowen Peak Ltd into the fast-track process after two failed applications. The company, owned by an Australian surgeon, is planning to build two gondolas and a cable car extending up to Bowen Peak, along with two predator-free sanctuaries, viewing stations, hiking and biking trails, an outdoor education centre, and more than 1,300 housing units across 175 large chalets in Fernhill.

Bowen Peak Ltd estimated the project could deliver $147 million in annual visitor spending and create 325 long-term jobs. However, the Queenstown Lakes District Council warned the spending estimates could be overstated, because they implicitly assumed most activity would be net new visitation. The council could not confidently confirm the development would deliver significant regional or national benefits, and said the application lacked details including a comprehensive assessment of natural hazards like landslides, rockfall, debris flows, seismic risk, and wildfire. The site is outside existing service boundaries, requiring infrastructure upgrades not currently budgeted.

Te Rūnanga o Ngāi Tahu and Papatipu Rūnaka opposed the project, citing a lack of meaningful consultation. The regional council warned it could generate over 1,350 additional daily trips on constrained road corridors. A district councillor described the plan as raising “more questions than solutions,” saying it would “create more cost for our communities in future [and] more congestion on our roads without adequate central government funding.”

The developer proposes to remove 400 hectares of wilding pines and restore the area’s pre-Pakeha ecological character. Housing would accommodate at least 2,794 people, nearly 10% of Queenstown’s projected population growth until 2053. Half of the housing would be for key workers and 5% for the Queenstown Lakes Community Housing Trust, though the council noted the district would likely have a housing surplus by the time the chalets are complete. The trust’s chief executive said the worker housing would need clear eligibility criteria and retention mechanisms.

Council staff described the developer’s engagement as “insufficient,” noting consultation was sought around the Christmas and New Year period. A local community group chair said the developer had not contacted residents.