However, developer Lane Hocking expects the demand will not be for the cheapest option.
''We don't expect much demand for that ... a smaller home of two bedrooms.
''With interest rates where they are, you would expect people to be above $464,000.
''People naturally go for what they can afford, not what's the cheapest on offer.''
He based his comments on the rules around KiwiSaver withdrawals and the level of rent tenants were paying in the Upper Clutha.
''They'll be paying a lot more rent than what the mortgage is on a $464,000 house.''
Mr Hocking's controversial 400-lot SHA on the outskirts of Lake Hawea is one of two in the Upper Clutha gazetted by the Government this week.
The other was the 281-lot Bright Sky SHA in Wanaka.
The developers of both have until September to apply for resource consent under the Housing Accords and Special Housing Areas Act.
The Lake Hawea subdivision will offer sections from 400sqm to over 600sqm and house and land package prices from $464,000 to $650,000.
Mr Hocking said buyers would be screened to prioritise first-home buyers and those intending to live in the houses.
''We have completely forbidden visitor accommodation activities including Airbnb.''
Mr Hocking had been working on the project for 18 months and was ''very happy'' with the decision.
He had no comment to make in respect of those who had opposed the development.
Lake Hawea Community Board chairwoman April McKenzie said she was ''extremely disappointed'' with the Government's decision and the board would be exploring its legal options.
''I think it's a clear breach of natural justice, if not a breach of the SHA Act itself.''
Ms McKenzie said residents were not against development but wanted it to occur inside the town boundary, where there was ''plenty of capacity''.
Ms McKenzie said her issue was with the Queenstown Lakes District Council and its processes, rather than with Mr Hocking.
''Our concern is with the quality of the decision-making by the QLDC.''
Mayor Jim Boult said he was pleased with the ''increased delivery of affordable housing.
''While the council listened carefully to the concerns expressed by some in the community about the SHA, we also recognised that we need to cater for growth in the district and that Hawea is increasingly being seen as an affordable satellite for those working in Wanaka.''
Mr Boult said the two SHAs would contribute 83 lots, valued at $22million, to the Queenstown Lakes Community Housing Trust.
Executive officer Julie Scott said with the trust had more than 600 eligible households on its waiting list, the additional sections would be ''put to good use through our affordable rental, rent to buy and assisted ownership programme''.
