United Welsh has been granted approval to build a mix of one, two and three-bedroom apartments, alongside apartments for older people with communal lounges and a roof terrace.
74 of the homes will be delivered in phase one, with the remaining 35 being delivered in phase two.
The affordable homes will be built by Celtic Offsite, a social enterprise within the United Welsh Group. Celtic Offsite will manufacture the timber frame structures for the homes from its factory in Caerphilly.
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Teresa Barnes, Development Manager at United Welsh said: "We are delighted to secure planning approval to bring these 109 homes to Cardiff. This development will help meet the local need for housing and provide high-quality, energy-efficient homes for residents. The site is in an ideal spot in the city, with Canton offering a wealth of parks, shops, and activities right on the doorstep.
"We look forward to progressing this development and seeing work begin on site."
The development will be built to high energy performance standards, embracing renewable energy sources such as solar panels and ground source heat pumps to reduce carbon emissions and help tackle fuel poverty. The homes will also benefit from electric vehicle chargers, so the growing number of electric vehicle drivers can charge their cars at home.
United Welsh partnered with architects Robert Limbrick and planning and development consultancy Turley to gain planning approval.
