About 240 sections are planned for a 25ha site bordering Edward St back to the Lincoln Wetlands area, a popular recreation area for walkers, joggers and cyclists, and home to numerous bird species.
Lime Developments owner Jack Lin said engineering consents are still being worked through, but the company was able to start preliminary ground work to take advantage of the spring and early summer weather.
The subdivision was given building consent late last year.
It was hoped the titles for the first stage of 62 sections would be available by mid next year.
The proximity of the wetlands, Liffey Springs Reserve and walking tracks along the Ararira-LII River would make the development attractive to buyers, said Lin.
The longer term plan was for a retirement home to be built on land purchased by the company on the southern side of Edward St and Ellesmere Rd. There were discussions with a retirement home operator.
Fencing with marketing would soon go up along Ellesmere Rd where the residential sections were to be developed, he said.
The subdivision would be called Brookvale and the rest home, The Sterling, Lincoln.