A 33-square-metre cabin sitting on a 600sqm elevated site with five-star views of Lake Wakatipu is on the market for more than $1 million.
Quite a suntrap, it has one bedroom and one bathroom, and is fully insulated with double glazing.
"It's small, but it's high end," Martin said.
If buyers preferred the section without the house, it could be removed and the price dropped from $1,150,000 to $1 million, he said.
Seller Allan Mitchell, of Invercargill, had two of the houses built for $150,000 each in Arrowtown and then moved to their elevated sections at the end of Park Street. He and his wife would live in one, while the other was built to satisfy planning rules that require dwellings on subdivided land.
Mitchell said "it was a challenging site but we wanted to perch on the front of the land to get the best view."
The property had been on the market for about 12 months.
"People have been fascinated with it," Mitchell said.
Many people from overseas understood the concept of smaller living, he said.
"We love it. Space hasn't been an issue," he said.
The Queenstown Lakes District Council is currently in the process of applying to the Environment Court for planning changes designed to supply more housing and make the subdivision of sections easier.