The McLennan development in Papakura is the first finished KiwiBuild development in the government's plan to build 100,000 homes in the next decade.
The Auckland homes were the first to be placed on the market, as part of the government's flagship project to address the nation's housing crisis and build 100,000 affordable residential properties over the next 10 years.
The demand is such that those wanting to buy the homes had to have a pre-approved mortgage and then enter a ballot.
The owners of one of the new homes have compared their purchase to winning Lotto.
Couple Derryn Jayne and Fletcher Ross paid $649,000 for their four bedroom home, which they said is great value for money, compared to prices elsewhere in Auckland.
They had given up hope of finding a house on the open market after a year-long search.
"We are so grateful that we have been given this opportunity," Ms Jayne said.
Mr Ross said the KiwiBuild system has fast tracked them to homeownership.
"The stress of buying a home in general is stressful but for something that was new, it was actually quite an easy process to follow," Mr Ross said.
He said there was a lot of help and resources at hand to make the process smoother.
Housing Minister Phil Twyford said welcoming the families to their new homes marked an historic moment.
"The idea of KiwiBuild was just an abstraction a few years ago, and now our government is implementing it," he said.
Another 12 KiwiBuild homes at the site are scheduled to be finished by Christmas, with another 58 to built next year.
Mr Twyford said the earth-moving season is just getting underway now, meaning the construction of thousands more homes will start ramping up.
Prime Minister Jacinda Ardern said the government is focused on housing for everyone, including those in the middle bracket that have been locked out of homeownership.
"It's not about one group, it's about every New Zealander, no matter what their income or their circumstances, having access to a decent warm, dry, home."
Mr Ardern said there is a lot more work to do, including making home ownership accessible for those on lower incomes.
Jacinda Ardern said the government is focused on housing for everyone. Photo: RNZ / Eva Corlett
The musician, Dave Dobbyn, sang 'Welcome Home' to the families while neighbours and representatives from local and central government looked on.
Ms Ardern said it is a momentous occasion and a sign of what's to come.
She gifted each family a mandarin tree to plant in their new garden.
Standalone houses in Auckland and Queenstown have been price-capped at $650,000, with apartments and townhouses under $500,000. Outside of Auckland, houses were price capped at $500,000.
- By RNZ's Eva Corlett