The development — 10 apartment blocks on the former Wakatipu High School site — includes 100 units available to eligible buyers through the KiwiBuild scheme, at a price of up to $650,000.
Government agency KiwiBuild and Ngai Tahu Property are working together on the project.
While further resource consents are still required, a consent granted by the Queenstown Lakes District Council last month would allow work to begin.
Ngai Tahu Property chief executive David Kennedy said demolition of the school buildings had been completed and the consent approval allowed Ngai Tahu Property to subdivide the land into large blocks, and then begin work on ‘‘horizontal infrastructure’’, including roads and pipes.
Three new roads will link Gorge Rd, Fryer St and Sawmill Rd, and include 99 on-street car parks.
As one of the council conditions, fencing to protect against rockfalls will be required in parts of the development.
Mr Kennedy said the first buildings were being designed, and application for resource and building consents would then be made.
According to consent documents, the first building will contain 33 units and front on to Gorge Rd.
In September, the Government put about 200 KiwiBuild houses in Wanaka on the open market, after a lack of interest from buyers who qualified for KiwiBuild.
