Sime Darby President & Group Chief Executive Tan Sri Mohd Bakke Salleh said the project would involve a few phases.
The first, he added, with 184 units and 108 shop lots had already started.
He told reporters after the launch of the project here on Saturday that Sime Darby Property would proceed with the next phase involving the balance of houses and shop lots by 2018, depending on market demand.
The project is part of the Johor Affordable Homes Project (RMMJ), a development venture under the Johore People’s Housing Policy.
The launch was officiated by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.
Meanwhile, Mohamed Khaled said under the RMMJ, 37,000 houses would be built by 2018 compared to the earlier target of 28,000, due to rising demand.
“The local authorities are after a number of developers to ensure they fulfil the state government’s conditions on building affordable houses.
“The state government will not hesitate to freeze projects of developers if they fail to meet the set conditions,” he added.
According to Mohamed Khaled, 90,000 registrations for affordable houses have been received by the state and this number is expected to rise.