Plans are in the works for a substantial subdivision on the south side of fast-growing Albert Town.

An 8.6-hectare site north of the Cardrona River could be turned into a 42-lot development if Southern Ventures Property Ltd’s resource consent application is approved.

Part of the subdivision would adjoin existing homes in the area known as ‘old’ Albert Town, which has seen much less development in recent years than on the other side of the state highway.

Some new lots would be next to Kinnibeg Street and Carlow Street, and sections are proposed to range in size from 514m2 to 916m2.

The part of the site located further south, beside the Cardrona River, is planned for two substantial wetlands, green spaces, walkways, and a neighbourhood reserve. 

This would give both residents and visitors more direct access to the river and the Cardrona River Trail.

The 8.6 hectare site on the south side of Albert Town. IMAGE: Supplied

The site includes a mix of zoning and planning constraints, which the proposed development aims to manage through its lot layout, wetlands, and open spaces.

The northern portion is lower-density suburban residential, while the southern part is rural lifestyle. It also has a building restriction area and identified flood hazards, along with a small rural-zoned section.

Substantial earthworks - about 55,000m3 of fill - would be required to lift the residential areas to mitigate flood risk, application documents said, and separate applications have been lodged with Otago Regional Council concerning this.

The proposal follows a surge in Albert Town property prices, which have risen more than 200 percent in the last ten years, from an average asking price of $553,500 in 2015 to almost $1.8M in 2025.

Queenstown Lakes District Council is currently considering the application.

Read more: Albert Town prices rise 200% in a decade