The first homes will be completed in August next year.
The land was originally offered to the Iwi Limited Partnership, who had first rights of refusal, but the partnership declined the offer.
The Crown land building programme is one of the National-led Government's main policies for addressing housing supply in the overheated Auckland market.
Labour's housing spokesman Phil Twyford said the development was "a start", but that the Government needed to "think bigger".
Two hundred houses was "just a drop in the bucket" for a city that had a shortfall of up to 40,000 homes, he said.
NZH