The Kingston Flyer is back on the market, attracting the interest of two potential buyers.

Property broker Adrian Chisholm said the historic steam train, and associated land and buildings, was relisted on TourismProperties.com with a starting price of $2 million.

Chisholm said the two interested parties were not in a position to make an offer earlier but with "tourism booming" they had reconsidered.

"It's fair to say that tourism is in a major growth phase and clearly various parties are seeking the opportunity to get into the tourism sector, 40 minutes from Queenstown," he said.

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The tourism growth and Kingston's development with the Around the Mountains Cycle Trail were the main factors which made the potential buyers have a rethink, he said.

"All of a sudden the whole dynamics of Kingston is about to change and so it's a different era," Chisholm said.

He said Kingston might become a suburb of Queenstown because of its housing shortage and the potential flyer buyers would have kept that in mind.

"It's a very strategic move by whoever buys it, and obviously people are thinking long-term now with what's happening in Queenstown," he said.

Chisholm said the name of potential buyers would remain confidential until the announcement of a final buyer.

The Flyer's Renwick owner David Bryce, bought the steam train in 2011 and it has been sitting idle for several years.

Last year Invercargill businessman Bryan Campbell confirmed plans he was working towards setting up a board of trustees for the Southern Steam Train Trust to have the flyer relocated to Southland.

Campbell's vision was to secure and restore the train to run on a twice-daily trip between Invercargill and Bluff.