As a result, up to a dozen buyers at Frankton North’s Waipuna Rise have been given the option of instead buying one of the planned initial 10 terraced homes, or having their deposits refunded.
Last May, Latitude 45 Development Ltd started marketing the first residential development north of Frankton-Ladies Mile Highway, opposite Queenstown Central, within the 27-hectare Frankton North urban area.
At that time, Allied Media reported one block of 20 apartments in a three-level building and 22 two-level duplex apartments in a four-level building were planned, alongside two blocks of terraced homes.
The apartments, all of which were to come with two or three en-suited bedrooms, were priced from about $845,000.
However, Bayleys Projects marketing manager Jamie Graham said the developer was now "reconfiguring it slightly".
"The terraced home component is still happening, but the apartments that were planned are being redesigned, basically.
"He’s going to offer more [terraced homes] instead of apartments.
"All the buyers who bought [an apartment] will have the option of buying into one of the terraces at a competitive rate, or they’ll get their deposits refunded.
"Ultimately, [the developer] will end up with a better product ... it’s a good outcome, just not his initial intention."
Mr Graham said apartment sales in the development had not been as popular as the terraced homes — according to the website 21 of those were planned, about 50% of which had sold.
They contain three or four bedrooms, plus a studio — a three-bedder, measuring about 176sqm, is on the market for $1.395 million.
As to why the apartments had not been selling, Mr Graham said it might be a combination of the location, being in a "slightly different part of Frankton", an unknown developer or high apartment supply across the Wakatipu at present.
That said, he had noticed apartment sales in Queenstown were generally slow.
"We’ve been on a couple of other apartment projects ... more in the centre of Frankton, and they’ve been really slow, whereas terraces have been fine."
Mr Graham said the developer wanted to sell the remaining three- and four-bed terraces before he would revisit his plans for the apartment building.
tracey.roxburgh@odt.co.nz and Philip Chandler
