It is understood Ngai Tahu Property is in the final stages of negotiations to buy the 4ha site from the Ministry of Business, Innovation and Employment.
When contacted for comment, Ngai Tahu Property chief executive David Kennedy said the company was "continuing to discuss the possibility of developing new homes in Queenstown with the Ministry of Housing and Urban Development".
"At this point in time no agreements have been finalised."
Ngai Tahu’s development will probably comprise apartment-style units on land beside the Queenstown Lakes District Council-owned Warren Park.
Last month, the ODT reported the MBIE was buying the site from the Ministry of Education following a disposal process.
The first homes are expected to be completed by 2022. The project completion date is estimated to be 2026, it is understood.
The KiwiBuild homes, of which there would be about 120, would be sold at market value.
Queenstown Lakes Mayor Jim Boult told the ODT he thought the proposal was "marvellous".
"I think ... [it’s] an exciting move; a very welcome move for our district and I very much look forward to getting the detail of the proposal when it’s announced."
It is understood that announcement is likely within two months.
Ngai Tahu has been planning for the site for some time, after the previous National government began work to fast-track the disposal process before Wakatipu High School relocated to Frankton.
Then social housing minister Amy Adams said up to 450 houses could be built on the site by Ngai Tahu. Forty percent would have been for social and affordable housing.
Clutha-Southland MP Hamish Walker said it was "fantastic" news and hoped the development would provide "some relief" for residents.
Queenstown Lakes Community Housing Trust executive officer Julie Scott said the trust was "very supportive" of any new housing developments in the district that targeted first-home buyers.
"The old WHS site is an exciting opportunity and we’re glad to see progress is being made here with Ngai Tahu and the Crown."
Earlier this year, the ODT reported the price of KiwiBuild homes in Queenstown could be $650,000 for a three-bedroom home, $600,000 or less for a two-bedroom and $500,000 or less for a one-bedroom - the same as in Auckland.
By July, 2484 people had registered interest in the KiwiBuild programme in the Queenstown Lakes. Yesterday, a KiwiBuild spokesman said there were now 3162 on the register.
Only New Zealand residents who are first-home buyers and earn less than $180,000 for a couple or $120,000 for a single person are allowed to buy a KiwiBuild home.
In Wanaka, 10 KiwiBuild homes at the Northlake suburb were offered for sale by ballot.
There were ballot entries for all 10, but two ballot winners chose not to buy and a third won another ballot drawn the same day.
