Once initial concept plans for the site had been developed further and the final number of homes for the site finalised, they will be shared with the community for feedback.
The purchase is the third Kāinga Ora has made in the city this year.
In May a 3540sq m plot at 32 Dehli Ave, Aramoho, was bought.
Kāinga Ora regional director for Taranaki, Whanganui and Manawatū Graeme Broderick said according to initial estimates, 10 two- and three-bedroom homes could be built on this site.
In March another purchase was made in Aramoho, with a 1.6-hectare section on Kaikokopu Rd being bought for $2 million.
Plans for the land had yet to be finalised, with the previous owners undergoing civil and infrastructure work to prepare it for development and mitigate stormwater risks.
Broderick said the infrastructure work was almost complete and preparations were being made for a new road on the land.
“We will update the community once we have finalised the number of homes,” he said.
As well as managing stormwater and flood risks, major Kāinga Ora projects had to undergo a climate change risk assessment during the planning process.
It was believed the site could be developed for medium-density public housing and was expected to offer a range of different-sized homes.
Work is also under way on constructing a planned 158 homes across multiple sites in Whanganui East, Gonville and Tawhero.
Broderick said Kāinga Ora had engaged early with the local communities around these developments to understand what worked for them and what could be improved.
“We want to ensure we are not only building homes but supporting sustainable, thriving and inclusive communities,” he said.
Construction on five of the properties in Gonville will be under way by the end of the year.
The agency was progressing with a number of the proposed developments and expected construction to start on those next year.
Finn Williams is a multimedia journalist for the Whanganui Chronicle. He joined the Chronicle in early 2022 and regularly covers stories about business, events and emergencies. He also enjoys writing opinion columns on whatever interests him.