The land, which was asphalt playing courts when the College Street School operated there, will be replaced by a 2500sq m two-storey building.
The building will have outpatient services, primary care and social agencies on the ground floor, alongside clinical spaces and private facilities for sensitive clients.
It is expected to be a health-care hub and offer wrap-around health-care and social services support for over 5000 Maori, Pasifika and low-income registered families.
Te Kaika chief executive Matt Matahaere said that building work had progressed without incident so far.
"We are out of the ground now which was the most critical part of the project for us because when you are in the ground you could find anything and everything.
"But we are past that stage now and next the foundations go down."
Services at Te Kaika had experienced minimal disruption as construction firm Naylor Love had built a temporary car park elsewhere on site, Mr Matahaere said.
