One hundred new council homes are to be developed at Muirpark Wynd, on the east side of the town.
Once completed, the development will provide a range of homes. The development has already been granted planning permission.
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Hide AdCabinet member for housing, councillor Stuart Currie, said: "In September 2008, the council asked housing officials to approach private developers with a view to uncovering pockets of land lying dormant that would be better served providing affordable homes."
Work begins in the Autumn.