Eurobodalla Council has sold 40 hectares of land behind Dalmeny's Tatiara Street to developer Andrew Scarano.
Contracts of sale were exchanged last week, with the director of Heppa Constructions saying he was excited to secure the site, his first south coast development.
"It's very early days and there is a lot of planning to be done but it is my intention this will be a quality development," Mr Scarano said.
Council's director of planning Lindsay Usher said the land parcel had garnered significant market interest.
"The Property Council of Australia is calling for government action to address the housing crisis. One of the few things Council can do is provide appropriately zoned land for development," Mr Usher said.
"Interest in the property was extremely strong and only reinforces selling at this time."
Mr Usher said while some residents had expressed concerns about the development, others wanted the opportunity for their kids and grandkids to be able to build a home in their hometown.
"The settings are in place to ensure it will be a good development outcome," Mr Usher said.
"The land is zoned R2 – low density residential – and the number of lots is influenced by considerations of biodiversity, landscape and heritage, provision of open space, and infrastructure such as roads and services.
"Residents views will be sought as planning and design take place, with opportunities for community input to be well advertised."
Read the frequently asked questions about the Dalmeny land release.
