Classic Builders director Peter Cooney, of Tauranga, said the company initially bought a block of about 57 lots to develop, offering them for sale as house and land packages.
''We've never seen so many [properties] get snapped up so quickly in Queenstown and, obviously, the velocity of sales ... at Shotover Country would be unprecedented.
''There's a huge demand there ... The market is very buoyant in Queenstown and I don't see it slowing down any time soon, providing the economy stays the way it is.''
The company was building up to 40 houses and about 70 more would follow within the next 12 months.
The average build time, once the [foundation] slab was down, was about 14 weeks per home.
''It's pretty fast from a Queenstown point of view.''
Mr Cooney said each house required work from about 18 different subtrade operators, a ''huge number'' when multiplied by the number of properties under construction.
A large percentage of new home owners in the subdivision were those who had previously struggled to afford a home in the resort.
Mr Cooney said Shotover Country had helped to satisfy that ''built-up demand for housing at a realistic level''.
However, even there prices were starting to rise.
The sections in original lots released in November 2012 were priced below $200,000.
Prices for the latest release of medium and low-density sections average $230,000 for medium-density and $260,000 for low-density.
Developer Sharyn Stalker said the prices in the latest release reflected lot sizes.
Mr Cooney said trying to maintain affordable prices in a market like Queenstown would always be difficult as long as demand outstripped supply.
Given extensive development at Frankton, which would bring with it two supermarkets, a Mitre10 Mega and several other national chain stores and create more employment opportunities, more and more housing would be required.
However, in Queenstown, where the majority of residents worked in the tourism and hospitality industries - traditionally ''not the most high-paying'' - work needed to continue on providing enough accommodation to create an equilibrium of pricing, he said.
''For what your average wage is down there and what you pay for rent, it's just out of tick.
''Affordability is your key issue down there and they need to keep addressing it - they need to keep looking at it and they need to come up with innovative ways to do that.''
