WORK IS underway on the biggest ever investment in social housing infrastructure since the Chifley era - the first phase of which will see the construction of 585 new social housing dwellings across Queensland by the middle of next year.

Federal Minister for Housing, Tanya Plibersek and Queensland Housing Minister Karen Struthers today inspected work on two suburban lots in the Brisbane suburb of Mt Gravatt where construction workers are building eight new social housing apartments.

The lots have been funded from a $40 million social housing fund.

The federal government “fast tracked” a list of projects provided by the Queensland government, Plibersek said.

"We are determined to do everything we can to support jobs and apprenticeships in the construction industry in these tough global economic times,” she said.

There will also be “positive flow on effects” to suppliers, small businesses and local economies, she said. Queensland's Housing Minister Karen Struthers said it was a win for workers in the local building industry and a win for people who need a roof over their head.

"It comes at a time when jobs and job security are more important than ever before," Struthers said.

The Mt Gravatt redevelopment is on land owned by the State Government since 1953. Previously, there were two three-bedroom houses on site.

Construction of eight two-bedroom apartments is expected to be completed by mid-November.

Brisbane-based company Rainbow Builders Pty Ltd was awarded the construction tender.