A crown-owned company in Christchurch is planning for 150 houses to be sold below market value, as part of a "co-housing" development.

Photo: Supplied / Nightingale Housing

The private homes, clustered around shared spaces, will be built on a central-city block on Madras St, opposite Latimer Square.

Crown-owned Ōtākaro Limited chose the Ōtautahi Urban Guild consortium to develop the project.

The dwellings will be delivered at cost and sold 10 to 20 percent cheaper than similar houses on the private market, said James Stewart, a spokesman for the group.

The project has a focus on sustainability - including community-owned solar and bike and car sharing facilities.

The group will start marketing the development in the new year.