The demolition of Croft House will pave the way for the development of Phase 3 of Aberdeen City Council's New Build Housing programme due to commence in March this year.
The Oldcroft Place site will be developed as a Homezone scheme with a courtyard layout to encourage social interaction and create sheltered useable external spaces.
The concept of a Homezone is to change the way that streets are used and to improve quality of life, by making them places for people, not just traffic, so that the needs of car drivers are secondary to the needs of users of the street.
Essentially a Homezone is a combination of elements that work to limit the volume and/or speed of traffic whilst creating places for play, resting and gathering for residents.
In line with Aberdeen City Council's Local Plan over one third of the site will be retained as public amenity space which will enhance the surrounding areas.
There will be a total of 31 units built which will have a mix of home types and sizes, including three bedroom family properties. Car parking spaces will be provided within the home zone.
The properties, 31 in total at Oldcroft Place will be environmentally sustainable, quality homes. This development marks the third phase of the Council's New Build Programme to create new council homes across the city.
It is being funded by Aberdeen City Council's housing revenue account and £930,000 from the Scottish Governments Incentivising New Council House Building Fund.
The New Build Programme is on target for an appointed contractor to start on site in March 2011.
Aberdeen City Council's Housing and Environment Convener Aileen Malone said: "The current economic climate means that there are more and more people in need of council housing and this is reflected in an ever-growing waiting list.
"Everyone who is waiting for an affordable rented home will be as excited as I am at the prospect of seeing this new social housing taking shape.
"A great many folk left the city because of the lack of affordable housing and now after many years of no build we are now in the process of building the first mainstream council housing in decades."
Director of Housing and Environment Pete Leonard said: "I am very pleased to see that construction of our latest phase of new build affordable housing is proceeding on schedule. This reflects the excellent partnership working between Elected Members, Council staff, Scottish Government and our private sector partners."
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