The 6000sq m piece of land at the southern end of the Dunedin school's sports field bordering Kaikorai Valley Rd has been bought by Michael Block under the company name 500 Kaikorai Valley Ltd.
Mr Block said he planned to subdivide the land into 11 residential sections of between 502sq m and 522sq m, costing from $89,000 each.
An application for resource consent to subdivide the land has been lodged with the Dunedin City Council, and a planning department spokeswoman said approval was ''imminent''.
Mr Block said his rationale for buying the property was to provide more affordable housing in the city.
''Obviously, there's been a lot of pressure on the housing market as of late, and I think providing some affordability in the marketplace is probably a key and is going to be well received.''
The subdivision sales would be managed by Cutlers Ltd real estate agent Warren Smith and there had already been ''some strong interest'' in the properties.
Mr Block declined to say how much he paid for the land.
The parcel of land was part of two separate blocks of school land for sale. A second block, totalling 3.91ha, situated above the tree line on the northwest side of the school, has yet to be sold.
School principal Rick Geerlofs was delighted with the disposal of the surplus land at the south end of the school fields.
He said maintenance of the land cost up to $3000 a year, and its sale paved the way for more housing in the area, which could ultimately bring more pupils to the school.
The board of trustees stands to receive up to 50% of the net proceeds after all the disposal costs have been deducted.
Any income generated from the sale would be channelled back into the school's budgets, Mr Geerlofs said.
The college's board of trustees asked the Ministry of Education to declare the land surplus in 2013 because it was not used by the school for daily education, and based on long term roll growth forecasts it was not expected to be needed in the future.
The ministry agreed the areas were no longer needed and the land was entered into the disposal process in May 2013.
The process is controlled by Land Information New Zealand (Linz) and requires surplus crown owned property to be offered to other government departments, previous property owners and local iwi, before being placed on the open market.
Linz Crown Property group manager John Hook said the property was sold to Te Rununga o Ngai Tahu on March 13 this year, under the right of first refusal provisions of the Ngai Tahu Claims Settlement Act 1998.
The property was then on sold to Mr Block.
