Welsh Climate Change Minister Julie James, has approved the proposed sale of the Upper Cosmeston Farm site which will see more than 500 new homes being built.
Development of the land owned by the Welsh government was established in the Vale of Glamorgan Local Development Plan and will also see a new primary school, public open spaces, an active travel route and community facilities also being constructed.
The development aims to help support both social and environmental well-being in the community.
The Welsh government said bidders will need to demonstrate how they will meet the “very highest standards” of placemaking, space and quality as well as delivering a far higher proportion of affordable homes than usual on such developments.
The Welsh government has a requirement for 50% of the homes to be affordable to support the its commitment to deliver 20,000 affordable homes by 2026.
Climate Change Minister Julie James said: “The Welsh government has a central role in addressing the climate emergency in Wales and we must lead by example in residential developments.
“We have been working closely with the Vale of Glamorgan on the development proposals for Upper Cosmeston Farm to ensure they meet the objectives I have previously laid out to deliver wider housing and social benefits.
“We are committed to creating a greener, stronger and fairer Wales and would encourage bidders to be innovative and go beyond the objectives set out to create beautiful homes and places that are high quality, energy efficient, low carbon and sustainable.”