Premium sections on the historic former hospital site on Napier Hill will go on the market this weekend.

It is the next phase in four for the Napier Hill development which will transform the site into a high-quality residential community.

New Zealand Sotheby's International managing director Fraser Holland said the sections were expected to be in demand because of the scarcity of flat sections in the prime location of north-facing Napier Hill.

"It is the fact it's sitting high on the hill, north facing with views to the ranges, the Ahuriri estuary and the inner harbour," Mr Holland said.

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He said the area had been "completely transformed - it's an amazing space now".
Sotheby's, the sole agent, was inviting buyers from $500,000 but Mr Holland said ultimately the market would decide.

Todd Property managing director Evan Davies said it was the second and last release of premium sites for standalone homes in the development and confidence in the housing market in Hawke's Bay was particularly strong.

"We're really pleased to be able to progress this next stage of residential development at Napier Hill," Mr Davies said.

"Our priority at Napier Hill recently has been to clear the site to enable further development.

"Decisions about the timing of construction of other parts of the development, including Arohaina Apartments, will be made at a later stage."

Todd Property Group bought the 5-hectare site in 2011.

?Those interested in buying a section can contact sole agent New Zealand Sotheby's International on 06 877 8199. Tenders for the sections close at 1pm on April 15.