Stage two of a controversial terrace home development on Main Street, Mount Annan was formally released on the weekend following the sell out of stage one.
Construction has also commenced on the 5.5 hectare master-planned community to be built alongside Mount Annan Marketplace.
The development, known as Montaine Residences, will ultimately feature 139 terrace homes, all of which will have a 7-star NatHERS energy rating.
Sunland Group Managing Director Sahba Abedian said the start of construction on Montaine Residences was a significant milestone, particularly given the impact of COVID-19.
"The construction team is continually monitoring the situation and has implemented stringent on-site safety measures to ensure works can continue during the pandemic and see the project delivered on schedule," he said.
"We are pleased to commence construction and create further stimulus to the region amid the COVID-19 crisis and furthermore, we are looking forward to the realisation of this new community integrating into the local neighbourhood."
Colliers International residential managing director Peter Chittenden, whose company is jointly marketing Montaine Residences, said the start of construction was a boost for the entire industry.
"Not only does the commencement of construction demonstrate confidence in both the market and the Montaine Residences project, it highlights a significant requirement of the Government's new HomeBuilder grant eligibility," he said.
"The grant requires construction of new projects to commence within three months of a contract-to-purchase being signed and the fact Montaine Residences ticks that box is sure to prove attractive to potential buyers."
The NSW Government has also announced zero stamp duty on properties of up to $800,000 for first-home buyers for the next 12 months.
The incentive replaces the previous zero stamp duty cap of $650,000 and means all stock within Montaine Residence's second stage will now be stamp duty exempt and qualify for the Federal Government's $25,000 Home-Builder grant.
First-home buyer Anita Conjur secured a property off-the-plan in stage one of Montaine Residences, taking advantage of various government incentives including stamp duty savings and the First Home Owner grant.
She said she was thrilled to see that construction of her new home was now under way.
Residents and councillors expressed concerns throughout the lengthy approval process for the development about traffic impacts, parking, noise and water.
Sunland Group beat Camden Council in a lengthy court battle last year to have the development approved.
The 1-5 Main St, Mount Annan: Fairer Outcomes For All Facebook group has been campaigning against "over-development" of the site since 2014.
A spokeswoman took to the page to voice the group's disappointment with the court's decision last year.
"We all knew something would eventually get built on this site at some point, and after five years of hard effort by the community and council, we would have hoped it'd be something aligned to what sits around this key central part of our town," the post read.
"Best of luck to those fellow residents who live in and around the block, and to the rest of us who must pass by/park/shop next to it every day."
The final homes are expected to be completed in late 2022.