The first state houses to be sold under a new government initiative went on sale on Monday.
Last week Housing Minister Nick Smith said some modest income earners would be given a 10% deposit up to $20,000 to buy surplus state houses.
Of the nearly 70,000 state homes across New Zealand, about 400 will be offered for sale.
The first 40 went on sale on Monday, with 18 of them in the Otago region.
The houses range in value from $120,000 to $210,000.
The new scheme was announced as the Reserve Bank's restrictions on new home lending came into effect which means most buyers will need at least a 20% deposit to buy a house.
The houses have been chosen for sale because they no longer meet the criteria for a Housing New Zealand home.
To be eligible to buy one of the state houses the buyer must be a first home buyer, have a gross annual income of $53,000 or less and be pre-approved by a certified lender.
