The Skyline Investment Group, through the Solomon Islands Development Corporation, is to build the new homes.
The special secretary to the Prime Minister, Rence Sore, says the project will start as early as next month, depending on how quickly the government can identify and allocate land for the project.
One of the proposed sites for the housing project is Baranamba on the outskirts of Honiara.
Mr Sore says phase two of the housing project will be in provincial centres.
