A total of 40 new homes are being delivered by Hadden Group in the Abbey Quarter.
The scheme is supported by £2.3 million of Scottish Government grant funding and will provide new homes near the town centre. Plans involve building 28 one-bedroom flats and two wheelchair-adapted properties, as well as one, two, three and four-bedroom homes.
With the foundations in place and the frames of the homes now beginning to appear, it is anticipated that the project will be completed in 2020.
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Communities convener, Cllr Craig Fotheringham said: "I'm delighted to see the progress being made here at Abbey Quarter. This project will assist us in providing more high quality places that people are proud to call home. The design is contemporary, but sits perfectly alongside our historic Abbey and I am certain the people will be delighted to live here."
Cllr Lois Speed added: "It has been exciting to see this development take shape. There's no doubt that, when completed, it will enhance the area and help improve the lives of all those that will be offered a home here.
"It's also great to see more housing options being provided for households who have a disability. It is vital that we continue to increase our stock of accessible barrier free homes to help tackle the growing demand and pressures on those individuals and families who require this type of property."
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