Confidence from the Housing Minister that a new special housing project in Auckland will meet deadlines.

Dr Nick Smith has announced 120 new homes will be built on a property in Waterview. It's on former New Zealand Transport Agency land that the government purchased in May.

"In order of scale, we're talking about $50 million being invested on the site," Dr Smith said. "That is going to increase the housing stock from the current 20 to 120," he said.

Dr Smith said the 20 Housing New Zealand homes already on the land will be demolished and replaced.

"They are giving priority to the relocation of those people as much as they can in the local community," he said.

He said it's a combined project involving Iwi, Housing New Zealand and Gemscott Resources.

The land is already considered a special housing area, which he said will speed up the consent process.

Dr Smith said building will start next year, and expects the mix of terraced homes and apartments to be fully completed by 2019.

Housing New Zealand's Patrick Dougherty said the 20 homes currently on the land need to be replaced. He said the new homes will include one, two and three bedroom accommodation, with a mix of apartments and terraced houses.

However, Labour MP Phil Twyford said announcing a few houses here and there doesn't amount to a serious response to the massive shortfall in housing that Auckland faces.

"The Government should be building thousands and thousands of houses. In fact they've overseen a net reduction of more than two and a half thousand state houses since they've been in office."