Wakefield Ashurst Developments has received the green light from Wagga City Council for a $13.7 million residential subdivision, promising 200 new houses in the eastern suburb.

Macarthur Real Estate Agency director Mark Macarthur said the latest land release includes plans for Wagga's first display home village, which has the potential to "attract the outside gaze" that will benefit not only builders, but the community as well.

"If we really are serious about pushing for 100,000 residents then we need to do a lot to showcase what Wagga has to offer," he said.

Wagga is already "fortunate" to be known for its established infrastructure and close proximity to the snow, beach and three capital cities, including Canberra, Melbourne and Sydney, Mr Macarthur said.

The goal now, he said will be to highlight what Wagga builders have to offer for prospective home buyers looking to relocate.

"(Local builders) have already done smaller display homes around the area, but nothing, I dare say, the size of a display village," he said.

"People are inherently lazy ... and they do not want to drive around to the other side of Wagga to look at another display house.

"A display village gives the buyer a lot more opportunity to walk around and see different houses in close proximity to each other."

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Mr Macarthur said a display village gives people the chance to look at the craftsmanship of multiple builders because it is going to take more than one to construct hundreds of new homes for the suburb.

He said this will also put the onus back on the builder to not only provide a product that caters for different buying groups, but attract the type of customer they want to build a house for.

"Each person has different tastes and wants and not everyone is going to match to a builder," he said.

"As the person walks through the display house, they decide then and there if it is a house or a home.

"That's where they get an emotional attachment, something you can't get from looking at designs on a piece of paper."