Building and Housing Minister Nick Smith has embarked on a 'magical bus tour' to showcase the Government's plans to free up land for desperately needed housing.

The Government will today unveil the first batch of Crown-owned land parcels it is offering to private developers in a bid to deliver up to 10,000 new homes.

The moves were announced in last week's Budget and aim to help alleviate a severe shortage of housing supply in the nation's biggest city and slow house price inflation, which is running at about 18 per cent.

Dr Smith has embarked upon a bus tour of Auckland this morning to unveil the first parcels of Crown-owned land to be offered up for private housing development, with a dozen media representatives in tow.

They have just visited an existing 24ha development site in Papakura on former Defence Force land where 600 homes are being built.

Dr Smith said by partnering with private housing companies the Government could increase housing supply but also "drive pace" to prevent land banking and demand a proportion of "affordable" homes priced under $550,000 to meet the Kiwisaver home start grant scheme threshold.

The bus tour will visit at least eight sites today, though details of the new land parcels are embargoed until 4pm after Dr Smith outlines the project to private sector development companies.