Good demand for in-town property from the Australian and New Zealand domestic markets resulted in two sections selling for more than $1 million each and three apartments for more than $1.25 million each in July, Real Estate Institute of New Zealand Queenstown spokesman Kelvin Collins said.
While the July sales volume tracked similarly to June, there had been a large increase in activity throughout July 2011, a reflection of last year's "low market", Mr Collins said.
A total of 46 properties sold in Queenstown in July, compared with 48 in June. There was a significant increase in median days to sell.
"This was the result of the increased activity in the family sector of the market, which has been weak.
"Many of the houses sold had been on the market for some time and, as a result of better marked evidence, asking prices were reduced to reflect buyer demand."
Mr Collins said there had also been "weak new-listing activity" over the past few months and buyers were being forced to reconsider old listings.
There was also a shortage of property for sale under $350,000 for first-home buyers and investors.
July 2011 recorded 32 dwelling sales compared with 35 for June 2011 and 24 for July 2010; and 14 section sales compared with 13 section sales for June 2011 and nine for July 2010.
The value of dwelling and section sales dropped from $30,569,000 in June 2011 to $24,647,993 last month, but it was up by 66% on July 2010's $14,822,100.
The median sale price of dwellings for July 2011 was $492,500, down 8% on the $535,000 recorded for June 2011, but up 13% on July 2010's $436,000.
