The federal and state governments have announced a joint-funded plan to build 490 modular homes in Woree, a suburb of Cairns, to be completed by 2026.
The development, based at a disused drive-in, is aimed at older Queenslanders who are looking to downsize, freeing up larger homes for families.
Premier Steven Miles says the government is proud to be building homes for the most vulnerable. (Darren England/AAP PHOTOS)
It will include 245 social homes, 223 affordable and 22 specialist disability apartments to be built using mostly Australian materials and labour.
"These ... units are specifically designed for people over 55," Premier Steven Miles told reporters on Thursday.
"We'll be able to target wraparound services to that community, and we also will see allied health and other services delivered here directly to them."
The units will have direct access to transport routes, the Bruce Highway, the local shopping centre and the aquatic centre.
Prime Minister Anthony Albanese said the project would change lives for residents in Queensland north.
"We want more Australians to have access to home ownership, more Australians to have access to private rentals, but more Australians as well to have access to social and affordable housing, and the key to that is supply," he said.
"And this project here is an exciting one, the largest one in Queensland."
The $400 million project will be funded by the state and federal governments with lending from Housing Australia, the Northern Australia Infrastructure Facility and ANZ and a capital grant from the National Housing Infrastructure Facility.
The $400 million project will include 245 social homes, 223 affordable and 22 disability apartments. (Supplied/AAP PHOTOS)
Northern Australia Infrastructure Facility CEO Craig Doyle said the funding commitment would provide a solution to the affordable accommodation shortage in the state's north.
"There is currently a major need for long-term social and affordable accommodation in Cairns," he said.
ANZ institutional group executive Mark Whelan said lending to the project is a result of the company's acquisition of Suncorp's banking arm which was approved in May.
"We are firmly committed to supporting more housing projects, especially in Queensland," he said.
Housing is one of the key Queensland election battle lines with a week of social and affordable home announcements from the Gold Coast to Mackay as the Miles government attempts to sway voters ahead of October 26.
More than 1100 social and affordable homes are currently under construction with 2200 contracted to be delivered.
The Liberal National Party has also promised 53,500 social homes by 2044, two years faster than Labor's commitment.
The opposition has also committed to opening up approvals for faith-based land to be used for social homes, potentially providing 10,000 properties by 2044.
The LNP is ahead in the polls and forecast to end Labor's nine years in government.
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