"Demand for land like this is exceptionally strong and will remain that way due to a critical shortage of appropriately zoned land," he says.
Humphries says investment demand for hotels like the Tanoa Aspen Hotel is also high.
"With all hotels and tourist accommodation in Queenstown operating at full capacity, investors and developers are frantically searching for hotels to purchase. However there are simply no other hotels available on the market."
The record breaking sale for a four-star hotel in New Zealand of the Novotel Queenstown sold off market for $91 million late last year highlights the current climate.
Humphries says Queenstown is running at full capacity with a record occupancy of close to 80 per cent.
"Queenstown is one of the hottest tourist destinations in the Asia Pacific region and is experiencing a major tourism boom fuelled by increasing airline capacity and a favourable exchange rate. The significant change for the region is that it has gone from being a high demand seasonal destination to a high-demand all-year round destination."
He says the 3.5 star Qualmark-rated Tanoa Aspen Hotel in the hillside suburb Fernhill has a solid revenue stream and profit margin accompanied by an attractive development site that can accommodate further expansion or other forms of development including residential, aged care or a Mixed Use development.
Robertson, Colliers' tourism broker in Queenstown, agrees that development land in the region is being snapped up at record prices, and says he expects the medium density development land adjoining the Tanoa Aspen Hotel to be a major attraction for investors.
"This property will be ideally suited to a hotel operator who would like to brand the hotel under its own name with options of either potentially expanding the complex up to 200 rooms or using the property for a range of other uses.
"The Fernhill location is one of the most elevated tourism sites in Queenstown with unobstructed views towards The Remarkables and over Lake Wakatipu, giving the Tanoa Aspen Hotel a major point of difference with a large number of accommodation properties in town that don't have such views," Robertson says.