Work has begun on the site of a flat-pack housing estate, which it is hoped will offer affordable homes to people on Tyneside.
An artist's impression of the BoKlok development
The land, opposite the Gateshead International Stadium, is being prepared for the timber-framed BoKlok structures, from Sweden.
Initially 36 flats will be built, with a further 84 two and three-bedroom homes to follow.
The first properties should be ready to move into by January.
Live Smart @ Home, the company licensed to build BoKlok properties in the UK, began the work on St James Village in Gateshead on Tuesday.
The land is being cleared and the infrastructure needed to support a housing development, such as mains services and roads, is being put into place.
Managing director Alan Prole said: "We have already had a lot of interest from people wanting a home on this development and expect this to further intensify when they see the site starting to take shape."
Councillor Malcolm Graham, cabinet member responsible for sustainable communities, said: "Providing affordable homes is the Holy Grail for local councils and housing providers, but it is still one of the most difficult things to achieve.
"We believe BoKlok could offer a new and viable solution to the problem of providing affordable homes and reinvigorating local communities.
"This is a development of national importance which is bound to create a huge amount of interest, and I don't think there will be a shortage of potential buyers."