The Star and Garter Tavern on Oxford Tce was demolished in 1996 by Pascol Corporation.
The live music venue and pub was set to make way for the Avon Manor apartment project, which was never built.
The site is now owned by Carter Group.
It is being sold to housing developer South Living after an off-market deal was made in March.
The property comes with an existing resource consent for townhouses.
The development would be either two or three storeys and would be elevated due to its location near the Avon River, with steps leading to the front doors.
The site on the corner of Barbadoes St covers about a third of a hectare.
South Living director Matt Williams told Stuff it hoped to start construction within the next couple of months.
The homes would take about 10 months to build.
-Allied Media
