Heritage advocates say they are seeing the most significant threat to Dunedin's old homes and other buildings in decades.
Meanwhile, momentum is growing in the business community to invest in the historic places - and give them a new life.
Southern Heritage Trust chairwoman Jo Galer said there were more pre-1900 houses in Dunedin than in any other city in New Zealand.
But she was worried about how much longer they would be here.
Galer said many were not being properly maintained and were having to be demolished.
"In the last month, we've lost a row of 1860's houses from Princes Street, which is one of our two main streets in Dunedin. And then we have at least seven to 10 other prime downtown Dunedin buildings currently sitting empty and neglected, and they're slowly rotting away on their foundations," she said.
"This is just appalling for people who have lived in the city for a long, long time."
Galer said Dunedin City Council's district plan rules were encouraging developers to eye up the historic sites to build on.
"Sadly, most of our heritage actually sits within that planning jurisdiction of intensification. So that makes it very appealing when a big property comes up for a property developer to think 'well I can maximise profits here now', because this properly is allowed be to subdivided and provide for multiple bedrooms on the site. It's a complete and utter travesty," Galer said.
Galer was particularly worried about a demolition application hanging over a 103-year-old Edmund Anscombe-designed house on Stuart Street.
Consent was being sought to replace the house and a protected lime tree with a multi-storey apartment complex.
The applicant declined to comment when approached by RNZ.
Ninety public submissions have been received by the council - almost all opposing the application.
Structural engineer Stephen MacKnight, who has been restoring heritage buildings for about 25 years, said Dunedin had not had the redevelopment pressure felt in other cities until relatively recently.
"I think one of the reasons why we still have quite a number of heritage buildings in Dunedin is the fact there hasn't been redevelopment pressure over quite a few years - through the '70s, '80s, '90s, there wasn't that much strong economic activity pushing for the demolition of buildings, but that's changed a bit," MacKnight said.
There was more commercial pressure on some of the bigger, older houses now, as people become more interested in inner-city developments, he said.
He loved the history of the buildings, and the fact they had had so many lives.
"It gives a link back to our ancestors and the history of the city. It kind of grounds a place having those historic buildings still not only there, but used for contemporary use. They're a living vibrant part of our city, not museum pieces, and I think that's pretty important," he said.
Business South chief executive Mike Collins believed investing in heritage buildings was the way forward.
The character and history of them could be strong selling points, Collins said.
"There's a lot of business that have invested in really making sure those heritage buildings are converted really professionally, and in doing that they're trying to keep the story of the history through the buildings. Even though there's innovative businesses going in there about the future, it's quite neat that they're holding on to those stories from the past."
At a workshop about new opportunities for business in the city on Friday, the business community will be given a tour around some of the heritage buildings which had been redeveloped - such as the Garrison Hall.
The Southern Heritage Trust wanted the council to increase its district plan protections for heritage buildings, and mark non-heritage areas in the city where development to cater to housing needs could safely take place.
Dunedin City Council has been approached for comment.