The Not For Profit plans to build the single-storey cottages in three stages starting in April at its existing Esprit village site in Eaton, 180km south of Perth.
CEO Chris How says the two-bedroom homes will provide a smaller housing type and a lower-priced alternative to the existing 82 villas which are priced from $375,000.
At $290,000, these new homes will be over 20% cheaper.