Prospective buyers had taken out options on all 21 sections on offer at the stage one launch of the HeathField development, he said.
Master Builders Federation Otago president Mark Ward said the demand for sections was positive news for what was a "pretty flat" building sector, but added that it could take up to a year before it turned into extra work for builders.
Mr Dippie, who has sold hundreds of properties since he founded Willowridge Developments in 1993, compared the demand for sections to a "mini land rush". He said he had not seen such high demand for "five or six years".
The HeathField subdivision was a joint venture with his brother, Martin.
Most of those interested in buying the sections were locals, but some had moved from Christchurch following last year's February 22 earthquake.
The demand had taken him by surprise and prompted the company to put a further 24 sections, which the company had had planned to market after stage one development ended, on the market immediately.
The strength of interest in the subdivisions was a "really good sign" for the local economy, with builders, landscapers, painters and suppliers all set to benefit when the sections were developed, he said.
Mr Ward said there were signs the outlook for the Dunedin building sector might improve in the next six to nine months, "but it's pretty ugly at the moment".
Federation members had noticed the situation was beginning to "pick up" for the industry in Central Otago.
Real Estate Institute of New Zealand Otago region spokeswoman Liz Nidd said it was too early to say whether the demand for sections at the subdivision was indicative of a wider trend.
"It's very hard to say because ...the numbers [of sections being sold] have been very slow right through this period of downturn."
