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The demolition will be completed in two stages, the first to finish by December, the second to be done in February to April.
As part of that, a stormwater upgrade project on the Brunswick St and Brunswick-Lake Esplanade intersection will start this month, and be finished in November.
It is the start of an initial $15 million investment over two months into three waters and roading infrastructure required to service the subdivision.
The overall project, being led by consortium Ninety Four Feet and Augusta Capital, will be completed in seven phases.
An earlier version of this story incorrectly included a photo of Queenstown Lakeview Holiday Park, which is not connected to the Lakeview development. The Otago Daily Times regrets the error.