Building is getting underway of 139 new homes at South Hill in St Helier.
Work could not begin under at least 25% of the development cost had been pre-sold.
That planning obligation has been met, meaning construction can get started.
Legendre has been appointed as the main contractor. It is the firm that built Horizon on the Waterfront.
The Westward development - on the site of the government's old Planning Department offices - has been years in the works.
Plans were first unveiled in 2021. Two failed planning applications followed.
READ: South Hill Homes Rejected Again
Jersey Development Company says a quarter of the 139 homes - 35 apartments - will be available to first time buyers through shared equity.
Another 35% will be sold via its Deposit Payment Plan which reserves a first home without a large upfront sum. JDC says the scheme has helped 117 first-time buyers get on the property ladder in the past decade.
Lee Henry, CEO of JDC, said: "We are delighted to have reached this milestone on this major regeneration project and to once again be working with Legendre Jersey Limited, which has a strong reputation for delivering projects to the highest standards.
"The start of construction at Westward provides a welcome boost to the local construction industry, supporting local jobs while creating new homes for islanders."
A listed building on the site will be retained and repurposed into Westward's staffed concierge service.
The nearby children's playground has now closed, but a new, modern one will be put in as part of the project. Other upgrades include new public toilets, a footpath on South Hill, pedestrian crossings, lighting and resurfacing part of the road.
READ: St Helier playground to close for three years
Westward is due for completion in summer 2029.
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