The council owned 18 cabins in the camping ground, Lakes Property Services property manager Joanne Conroy said.
"They have been on the market for up to two years without anyone really putting any effort or thought into them," she told the Otago Daily Times.
She told the councillors at the council's finance, audit and corporate accountability committee meeting on Tuesday that despite many expressions of interest, none had sold.
"The asking price has been about $45,000 - within 10% of the original purchase cost - and that is just too high for today's market," Ms Conroy said.
There was a catch for bargain hunters, though - the cabins had to be demolished or relocated from the camping ground when the licence expired in 2015. They also required a lot of maintenance.
Committee chairman John S. Wilson asked if there was potential for the Queenstown Lakes Community Housing Trust being interested in the cabins as a cheap "first step for people" - but council chief executive officer Duncan Field said a lack of insulation made the cabins unsuitable under the trust's criteria.
"They are not something you would be able to spend a winter in," he said.
Some of them lacked a full bathroom or hot-water cylinders and most needed repainting, and perhaps some insulation in the ceiling.
Ms Conroy said the council bought the cabins in 2001 for a total of $7 million. Many had since been sold, leaving "the bottom of the pool".
The ongoing rental income meant the remaining cabins were still a good investment, especially as a depreciating asset, Ms Conroy said.
