However, the median sale price for dwellings dropped, bucking the trend in most other parts of New Zealand.
Real Estate Institute of New Zealand Queenstown spokesman Adrian Snow said the momentum gained in July and August continued in September, and residential sales rose 22%.
He said 50 residential dwelling sales were recorded last month, a 9% increase on August (46), and 22% more than September 2008 (41).
Apartment sales remained steady, with seven in September, down two from August but "significantly improved" from two sales in September 2008.
"Seasonally, with the end of the snow sports season, we normally expect a decrease in activity as our visitors return home, [but] this year it appears as though local and regional buying activity is going to continue at a higher than expected level," Mr Snow said.
Last month there were three sales over $1 million, with the highest value sale for the month recorded at $2.585 million.
Properties available for sale continued to be in short supply, compared with "reasonable" numbers of buyers.
Mr Snow said buyers continued to be "very selective", rejecting "incorrectly priced" properties.
Some potential vendors would stay away from the market until a "recovery in pricing" occurred.
"The shortage of properties for sale would suggest that upwards movement in sale prices can be expected.
"Queenstown's recorded sales activity appears to be very similar to the rest of New Zealand's, with increasing volume and reducing time to sell."
The median dwelling price for September was $462,000, down from $506,250 in August and $530,000 in September last year.
The median apartment price for September remained consistent with August 2009, staying at $415,000.
Mr Snow said the median days to sell for dwellings reduced 15%, from 60 for August 2009 to 51 for September 2009, reinforcing the feeling that "properly priced property" was selling faster.
