Passive housing is a building design standard using insulation, ventilation, and other techniques to maintain a comfortable temperature with minimal energy use.
In December, the Dunedin City Council approved updated consents for a two-building development at 19 Constitution St.
The consents were initially granted in 2021 but were reissued last month to allow the buildings to be built independently of each other.
Auckland-based developer Matt Lambert said the new consents allowed more flexibility during the construction process.
"It’s good to have optionality around all these projects. So when it comes to the market - hopefully in the next couple of weeks - then if it’s wonderfully successful, then I’ll build the whole thing," he said.
"If suddenly it’s not so successful for whatever reasons, I can still proceed, just in a different format."
Fifteen units were planned for the site - a mix of one- and two-bedroom apartments - and were designed to be passive housing with high energy efficiency, Mr Lambert said.
"This costs a little bit more to do and puts a little bit more work in because you have more criteria to hit.
"But the whole point being, it has to be better ventilation systems, it has to be better for warmth, better for insulation."
He said energy-efficient housing was building for the future.
"If you’re doing something that’s going to be around hopefully for 50 years, 100 years, you should be building at the high end of the curve."
Mr Lambert had worked with local contractors for the project and said building passive housing was becoming more accessible.
"The architects are more comfortable doing it. The builders are happier doing it. The technology is here to do it."
The units would be available for purchase or to rent and would suit students and workers alike, he said.
"I think Dunedin’s a really interesting market. As the population changes in Dunedin... you’re going to find the... demand for housing will adjust.
"So, I think it’s a great sector to explore in the city."
Work would begin this quarter with the demolition of existing buildings and construction was was expected to be complete in about 12 months.
