Wellington has a big need for housing, mayor Justin Lester says, and he does not want it to become another Auckland.
A $500 million development in the suburb of Shelly Bay, on Miramar Peninsula, is on the cards.
It includes a large rest-home, almost 300 apartments, dozens of homes, a hotel and a brewery.
A resource consent application is being considered by city council staff, and Mr Lester said the need was there.
"We don't want to be another Auckland, we want to make sure we're front-ending the problem before it becomes an issue.
"We don't want to have average million-dollar house prices in Wellington."
"We're going to build more houses for a start."
Mr Lester said it is the council's job to make it easier for people to build homes.