Western Homes will invest around £6 million on the new scheme at Derrywinnen Heights, off Bush Road.
The new timber framed homes will come in a variety of three and four bedroom semi-detached and four bedroom detached house types.
Shane Canavan of Western Building Systems said: "With prices starting at £135,000 these turn-key homes which are characterised by strong levels of thermal efficiency and acoustic performance are exceptionally good value for money. The specification created by our bespoke team of designers includes full internal and external turn-key finishes, triple glazed windows, composite external doors and solid fuel stoves.
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"We know there is a strong demand for high quality, affordable housing in the Dungannon area. The location of these new homes makes them a sensible choice for those wishing to commute to local towns such as Cookstown or Dungannon or further afield to Belfast with their proximity to the M1."
