A dispute between neighbouring Wanaka property owners remains unresolved, after a bid by Fiona Graham to lift an injunction on her property failed in the Christchurch District Court.

The Queenstown Lakes District Council sought and obtained an injunction against Dr Graham's company Wanaka Gym Ltd to prevent the premises at 155 Tenby St from being used or occupied for residential activities.

A group of 19 residents, mainly from overseas, were evicted from the Wanaka Gym property on August 12.

Ms Graham applied to the Christchurch District Court to have the injunction lifted on September 10.

The Otago Daily Times has been unable to contact Ms Graham, despite repeated attempts by email and phone.

She has not returned messages and is believed to reside in Japan.

A reserve judgement released by Judge Raoul Neave yesterday said the matter between the two parties had a lengthy history.

The QLDC obtained its injunction based on the grounds that the premises at 155 Tenby St did not comply with council's requirements under the provisions of the Building Act 2004, and that the building was dangerous.

Judge Neave said the key issue was whether the building was dangerous and whether Ms Graham had complied with a "Notice of Fix" to repair the property and thus comply with the council's building requirements for residential activities.

There was no evidence put before the court which "really disputes" the council's conclusions about whether the building was dangerous, Judge Neave said.

The Wanaka Gym property "simply looks" more like a "hostel or a hotel or a hall of residence than it does a house or home," the judge said.

The injunction was properly granted and there were no grounds for rescinding it, Judge Neave concluded.

The QLDC was entitled to costs "in the absence of any reasons to the contrary" he said.