Birmingham leaders joined Vistry and McAuliffe to celebrate work starting, along with Vistry's partners Bromford and Sigma.
More than 40% of the development will be offered as affordable tenures, helping to address the severe shortage of affordable homes in Birmingham.
McAuliffe is carrying out asbestos removal works, extensive slab lift, and cut & fill earthworks over a 50-week programme.
John McAuliffe, group chief executive of McAuliffe Group, said: "This is a brownfield site with a strong local history for us, so it’s a real pleasure to be involved in its regeneration.
"Sustainability is a core focus of this project. We have already begun an extensive programme of earthworks and will treat and re-use as much material as possible onsite."
