A Marutuahu Iwi-led housing development will be built in Auckland, delivering 100 new homes with an average price of just over $500,000.
Housing Minister Nick Smith announced the new development on New North Road, just 8km from the CBD, on Wednesday after signing an agreement with the Marutuahu Ropu and Ockham Residential Ltd, the first under the Crown and Tamaki Collective Housing Protocol.
Under previous rules the former New Zealand Transport Agency site would have been able to sustain 24 homes, but with Special Housing Area status that figure has more than quadrupled.
Construction on the first homes is set to begin in July with the full 100 expected to be completed by 2019.
The homes will have an average price tag of $537,000.
"The key to more affordable housing close to Auckland city is greater density and smart design," Dr Smith said.
"Ockham has proven experience in developing innovative, high-quality and affordable housing with a focus on three- and four-level character apartments."
With developments also under way in Hobsonville, Weymouth, Tamaki, Northcote, McLellan and Moire Road, Dr Smith said the Government was currently involved in building more homes than ever before.