The sale of a 7.6 hectare property in the Peacocke area of Hamilton will open up the southeast of the city for further residential development.
A statement from Lodge Real Estate says the first of the two-stage development at 71 Dixon Rd reached settlement this month. Stage one of the development will see 49 new homes built, with earthworks already under way.
Sixty more sections will become available in stage two in April 2019.
Hamilton City Council has put aside land in the subdivision for a public park.
Lodge sales consultant Brian Alcock says the development is good news for expansion in the south.
"The majority of the development in Hamilton in recent years has been focused on the northern suburbs, so the time is right for development in the south.
"Peacocke has previously been a slow growth area, however its current development shows the investment and attention the area is receiving," he says.
Current large-scale developments include the southern links expressway and a planned new bridge over the Waikato River.
Alcock says the Dixon Rd development provides a great family home option at a more affordable end of the scale, compared with houses in the northern suburbs.
"Houses in Rototuna and Flagstaff are reaching sale prices close to the million-dollar mark, which isn't affordable for first home buyers.
"This new development in Peacocke is an opportunity for first home buyers or young families looking to upgrade to their second home. We're expecting houses in the Dixon Rd development to range in price between $650,000 to high $700,000s."
Twenty-five sections in the Dixon Rd development have already been sold. Alcock says. "A lot of sections have been sold to builders already, and there's been a fair amount of interest from the general public."
Sections available vary in size from 400-700 square meters.
The Peacocke area was handed over to Hamilton from the Waipa District in 1989 for the city to use for future growth.
Earlier this year, Hamilton City Council put forward a proposal for $240 million from the Government's $1 billion Housing Infrastructure Fund, with $162m to go into the Peacocke development.
"Developing Peacocke has been in the district plan for nearly 30 years," says Alcock.
"It's been on the books for a long time, with a lot of hard work behind the scenes between developers and vendors to get it going."