He noted the site was suited to this and located centrally to all the services required - and that market forces would dictate whether people chose to purchase the units that would be freehold titles incorporating common access areas and a common outdoor area.
He noted that the development would improve the aesthetic appearance of the two sites between Russell St and River Terrace, which had been "far from appealing" for the last 20 years.
"A well executed development...would have to be a 100 per cent improvement," he said.
Central Hawke's Bay mayor Alex Walker said such investment and development was important for the future of the district.
"It's important to council to work with these ideas and see how to make them happen.
"We need to be preparing for a slightly older generation in our community and they have different housing needs.
"We currently have a shortage of housing in Waipukurau - but as well as a short-term need there's also a long-term need to look at how we accommodate people in our towns."
Submissions on the proposal close on April 20, after which an independent commissioner will hear the submissions and weigh up the merits of the case, including any objections.