Queenstown is ahead of its housing consents target.
Building and Housing Minister Nick Smith says 557 dwelling and section consents were issued between October 2014 and September 2015 - 60 percent more than the target of 350.
And year two is on track with 399 consents already issued at the six-month point against a target of 450.
Queenstown has a severe housing shortage and Dr Smith signed a housing accord with the district council in October 2014 to speed up developments.
"We are making progress with nearly 1000 sections and homes consented in the first 18 months of the accord," Dr Smith said.
Queenstown Mayor Vanessa van Uden says there are huge challenges and no silver bullet.
"But the accord, along with incentives for faster development projects and enabling higher density accommodation, will enable increased supply."