The Queenstown Lakes District Council has quietly removed its Commonage land - a 9.5ha block of wilding pines above Vancouver Dr on Queenstown Hill - from sale until an Environment Court appeal by a neighbouring property owner is resolved.
Last September, the council announced the land would be put back on the market after a nine-month marketing campaign failed to produce a sale "on terms it considers best for the community".
Independent commissioners last year recommended the land be rezoned as medium-density residential.
That prompted an appeal to the Environment Court in June by Vancouver Dr property owner Peter Manthey.
Council property director Richard Pope said the land had been withdrawn from sale until the appeal was resolved.
The council was continuing to work with Mr Manthey on the zoning objection, but if court action proceeded, it was likely to happen later this year.
The resolution of those issues would "improve the attractiveness of the property" to prospective buyers, Mr Pope said.
The council announced in late 2017 it intended to sell the land, which is the last block of 40.47ha vested by the Government under the Queenstown Reserves Vesting and Empowering Act 1971.
The council had previously resolved to sell it to help fund infrastructure.
Last September, Mr Pope said the sale had not been completed to the council's satisfaction despite more than 80 inquiries being received by JLL and Luxury Real Estate and five formal offers to buy the land.
