Housing Minister Phil Twyford has announced the first KiwiBuild homes are finally underway.
Eighteen three- and four-bedroom homes are under construction in Papakura, south Auckland, on land formerly owned by the Defence Force.
"As the frames start to go up, is a fitting time to announce these are the first KiwiBuild homes," Housing Minister Phil Twyford said on Saturday.
"These first 18 homes will be ready for their families in August. A ballot, open to first homebuyers, to purchase these homes will be launched closer to that time.
"A total of 30 KiwiBuild houses are projected to be built on the site by the end of 2018, with the possibility of more in the following stages of the development."
He expects the three-bedroom homes to sell for $579,000 each, and the four-bedroom places $649,000.
A private development on the land failed to get finance.
"We seized the opportunity to build KiwiBuild homes, rather than just watch the grass grow," said Mr Twyford.
"National's plans for unaffordable houses… fell through. Without KiwiBuild, this land would be sitting empty today. Instead, we are putting up good homes for families to live in."
Labour has promised 100,000 "affordable" homes in 10 years under its KiwiBuild programme. A planned development in Mt Albert was revealed last month.