Two stars may be a bit harsh, but I am selecting that option to draw attention to the odd mix of…read morepluses and minuses that The Waterfront offers. You may decide the pluses outweigh the minuses, but they are not necessarily apparent from the available online information.
On the good side, the location does indeed have views of lake Wakatipu and the mountains behind it, and the apartments we saw are comfortable and fully equipped. The management is pleasant and accommodating, and clearly wants to make your experience a good one.
On the not so good side: the building is actually located on a busy road, with the lake about 50m away (on the other side of the road). Consequently, first-floor units (one of which we were given upon arrival) primarily give you a view of the car park in front of the building, and the road, and the busy sidewalks. You can see the lake and mountains further on, but it's certainly not a tranquil view of the water, by any stretch. Moreover, because units are given out as available, you never know whether you're going to get one of these lower units. So you might get an upper unit, which have unimpeded views of the lake and mountains, or a lower one with compromised views. Some people may not care about this one way or the other, but we do...especially for the price, which is pretty expensive.
To be completely fair, I suspect any unit about level 1 would be OK (though the higher up you go, the better). And most of the units (80%?) are level 2 or above. So by random chance, your odds of getting a good view are good. Nevertheless, having traveled some 15,000 miles for this vacation, for us the aesthetic experience matters a lot, and we don't like having this be a matter of the luck of the draw. Therefore, had we been aware of the situation ahead of time, we would not have booked here.
I should mention that the management graciously relocated us to a 4th floor unit the day after our arrival, after we complained. They seem aware of the "not clear what you're buying" problem; we are evidently far from the first to mention it. And they will accommodate you if they can. Still, if you got a level 1 unit and the building was booked solid for your stay, you'd be out of luck as far as a switch is concerned.