NEW HOUSING: A development near Riccarton Racecourse must include lower-cost homes.

A new Riccarton housing development in will have at least a third of its homes priced below $450,000, it has been announced.

The 600-home development on the 123-hectare Racecourse Reserve would also require special legislation to be built, Building and Housing Minister Nick Smith said in a statement.

The legislation would amend the Christchurch Racecourse Reserve Act 1878 to enable the development.

The development scheme required 180 homes to be priced below $450,000 to access to the Government's KiwiSaver HomeStart scheme.

The reserve, between Yaldhurst and Steadmans Roads, was created in 1878 when it was "miles into the country and 20 years before cars arrived" in the country, Smith said.

Read more:

* Riccarton site set for new housing

* 800-home subdivision gets backing

* Housing projects behind schedule

* Riccarton market will continue

The legislation would also require any proceeds to be used to support racing and ensure Ngai Tahu's 'right of first refusal' was respected.

The bill would progress in consultation with the Christchurch City Council, Smith said.

It would be introduced into Parliament in May, enabling construction to get underway by summer.

Last year, 4400 new houses were built in Christchurch, 73 per cent more than in 2013.