Plans from Bloor Homes for 301 houses on land to the west of Station Road, Newport, were given the green light earlier this year.
There will also be a 70-unit care home, built by Keon Homes.
Bloor Homes have started preparations for work on the site and, under their development timescale, are aiming for the first residents to move in by the spring of 2023.
Their aim is for the entire development to be complete by the winter of 2027. As a condition of the plans, Bloor will pay £3m towards local infrastructure.
A spokesperson from Bloor Homes’ Midlands region said: “This is a new development of two-, three-, four- and five-bedrooms homes which will bring both new houses and bungalows to the area, creating new homes for everyone from first time buyers to families.
"In addition there will be 60 affordable new homes built here as well as extra care flats available as affordable rented homes.
“We are also contributing £3 million in infrastructure and services, ranging from highway improvements, additional school capacity, a public open space and multi-use games area.”