The construction industry is welcoming a push from the government to free up land in Auckland, but the opposition is far from impressed.

Housing Minister Nick Smith revealed details yesterday of a plan to buy 10 parcels of land in Massey East, totalling nine and a half hectares. Three other sites are in the pipeline at Manukau, Avondale and Hobsonville.

Smith said that 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.

It's hope the plans will go some way to alleviating the Auckland housing market bubble.

Building Industry Federation chief executive Bruce Kohn said the move is great, and will get the ball rolling.

"It's a start," he said. "I also like the fact that setting strict time frames for the houses to be built to prevent landbanking is an excellent move."

However, Kohn doesn't think the time limits placed on those who buy the land to begin building will deter investors.

"I don't think it's a question of keeping it out of investors' hands, I think it's a case of setting the conditions right that will bring the developers in to get on with it quickly."

Labour's housing spokesperson Phil Twyford is entirely unconvinced Smith's plan will help solve the city's housing problem.

"Smith's special housing areas, which are which are supposed to bring new land into the supple, have only produced one hundred and seventy houses in a year a hand half," he claims.

"Nick Smith announcing another thirty hectares is clearly not going to solve the problem."

Twyford also said there's no point in freeing up land if there's nobody to build new houses.

"Labour, with our Kiwibuild policy would crank up the construction industry, train thousands and thousands of apprentices and build a hundred thousand affordable homes."

In addition to the announced plans, a rugby ground and a military camp are set to be subdivided as part of a major sell-off by the Auckland Council.

It's selling off $350 million of surplus properties for the building of nearly 3000 homes, including the former Avondale ground of Suburbs Rugby Club, where 25 terraced homes will be built.