The government has unveiled its plans for its massive housing project in South Auckland, with the first batch of new homes set to be ready by the middle of next year.

10,000 new homes will be up for families from all walks of life and will be built in the next 10 - 15 years. 

The development will be located near the route of Auckland's planned light rail which runs from the city centre to the airport near existing run-down state houses in Māngere.

Housing Minister Phil Twyford is promising big investment here in the area.

"We are going to replace 2,700 old state houses with 10,000 new modern warm dry homes." 

Twyford also says there will be 3,000 new state homes, 3500 Kiwibuild homes and 3500 homes available for the open market. 

"We're going to do this redevelopment around the light rail network which will connect two of the biggest concentrations of jobs in the country in the CBD and out here around the airport. 

But while plans are underway to transform these state homes, Māngere resident Mary Fiefia admits she'll miss living in the place she's called home for 16 years. 

"I feel sad because we have to like leave our old house of 16 years."

It's not known what the cost of those new private homes will be.

But Twyford expects those under the Kiwibuild programme will sell for no more than $650,000 and they're working with local iwi on the project. 

"We are working directly with many of the iwi in Tāmaki Makaurau including Te Ākitai Waiohua."

But with Māori homeownership at an all-time low, only time will tell how many Māori will get their foot on the property ladder at this Māngere development.