The country's biggest landlord is after one- and two-bedroom properties in Dunedin.
Housing New Zealand wants to lease vacant one- or two-bedroom homes for five or 10 years to accommodate clients in rental housing.
"The benefits of leasing properties rather than building houses mean we can be more responsive to demand in terms of property size and location," Housing New Zealand lease services manager Tara Wright said.
South Island properties in Nelson, Christchurch, Ashburton, Timaru, Dunedin and the West Coast were in "high demand", she said.
Properties would be leased at the market rental rate, determined by an independent valuer and agreed by the owner.
The lease programme had operated for 15 years and enabled the accommodation provider to "replenish housing stock more readily".
Housing New Zealand leases almost 3000 properties across the country, with more than 300 in the South Island.
