Cut-price homes planned for St. David?s can be erected in just a day boast developers who say they are aimed at average wage Bermudians priced out of the housing market.

The Harbourside Village project in Southside will be carried out by various small contractors said project manager John Gaston, of Bermuda Homes for People, using pre-cast concrete which can be erected quickly.

He said the non-profit venture could be the start of other such building projects elsewhere on the island.

A number of contract contractors will be invited to bid but the systems will be able to withstand hurricanes promised Mr. Gaston.

But he said the standard of finish would be top drawer.

?You can do a house in a day in terms of the shell.

?Modular housing is the wave of the future in the US, even in areas where standard building is not that expensive.?

The project is due to start in early 2005 and be completed within 18 months, with half the 196 homes being offered at just $199,000 via lottery. Partner Clifford Schorer, who owns the Sonesta hotel, said: ?It?s the only way to build affordable housing, you cannot use standard building techniques they are just too expensive.? He said he had been inspired by the plight of his hotel employees who could not afford $1 million dollar homes common in the Bermuda housing market.

But he stressed many of the open market homes will be cheaper than the average homes on offer in Bermuda with two-storey homes, two-bed homes going for between $300,000 and $495,000, according to the location and water views.

The mix of price ranges will help avoid mistakes made with public housing projects in American and Britain where the poor were lumped together forming ghettos and Police no-go areas, said Mr. Schorer.

He said Southside had tremendous potential with opportunities for retail while Mr. Gaston thanked Government for clearing red-tape over the ground lease for the former US base site.

Bermuda Housing Corporation (BHC) will be vetting applications for the draw available for those with income between $65,000 and $85,000.