Waka Kotahi NZ Transport Agency turned down the district council’s request to take the land off the market.
NZTA advised the district council that it still considered the land surplus to future needs, so would continue with the sale.
The sale has dealt a blow to residents wanting to ease congestion on nearby roads.
The district council made the request last month after an appeal by Prebbleton resident Chris White, wanting NZTA to hold onto the land due to its suitability for building an additional on/off ramp from the Christchurch Southern Motorway.
NZTA referred questions to the district council for comment.
Group manager property Douglas Marshall said NZTA "still hold the view that the land is surplus to their future needs and will continue with the sale".
The district council had declined an opportunity to purchase the site itself.
“Council does not have a need for this land for its own activities and does not have a role in owning land for future highway projects,” Marshall said.
White said NZTA and the district council were not able to make good traffic decisions.
Another on/off ramp would help keep Rolleston traffic on the motorway for longer and ease congestion on Shands Rd and the surrounding roads.
“NZTA’s decision not to give Lincoln its own on/off ramp was always going to have a detrimental impact on Prebbleton and the Selwyn district,” White said.
The roading system is already at capacity in peak hours. With thousands of new homes planned, NZTA and the district council needed to “mitigate the traffic chaos and the negative impact that is surely coming,” White said.
Chris Jones at Bayleys said there had been high interest in the land from a range of potential buyers leading up to the deadline (May 26) sale.
The land has sold for an undisclosed sum.