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Forty homes, all two bedroom apartments, will be built at the Donaghadee Road site by Connswater Homes and Sky Developments.
The scheme is being piloted as the first social housing scheme to meet Level 4 of the Code for Sustainable Homes.
From April 2008, all new social housing has been designed to Level 3 of the code.
At Level 3, CO2 emissions are improved by 25%, whilst Level 4 increases that by a further 19%.
The code is designed to improve the sustainability of new homes and requires all new social housing to offer a reduced environmental impact and lower running costs.
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Housing Minister Margaret Ritchie was on-hand yesterday to cut the first sod at the site.
"I am delighted to see construction of this new scheme underway.
"The delivery of high quality energy efficient and sustainable social housing is a key priority for my department."
The Minister congratulated Connswater Homes and Sky Developments for planning an "innovative, flagship development".
Ms Ritchie added: "My Department has an aspiration to build to the highest levels of sustainability. This pilot, to Level 4 of the Code for Sustainable Homes, with even higher levels of energy efficiency, will be invaluable in helping decide the best way forward."
Sky Developments recently completed Northern Ireland's first carbon neutral house in Holywood and will be using some of the innovative energy saving technologies employed there, in this latest development.
The apartments will be built using modern methods of construction, with Structural Insulated Panels keeping heat loss to a minimum.
Solar photovoltaic panels will generate electricity to run lighting for communal areas. Residents will benefit from green roof gardens for leisure and relaxation and convenient cycle parking and storage will be provided.
(PR/JM)
