Bellway Homes and Homes England said their Tipner East scheme would play an 'important role' in the wider development of land in the area, including the proposed new £1 billion 'super peninsula'.
However, concerns have been raised about the suitability of the area's 'narrow' roads for accessing the site.
Portsmouth City Council first allocated the site, which includes the now-demolished greyhound stadium, for development in 2010 when it was included in its Local Plan.
A series of planning applications have been submitted since then but no construction work has taken place.
As a result, Homes England, the government body that helps fund the construction of new affordable housing across the country, began buying parts of the site and brought in Bellway Homes to lead the development.
Homes England has also carried out work to decontaminate the land.
Their full application proposes the construction of 203 homes, 30 per cent of which would be affordable. Three-quarters of the homes would be flats.
‘Bellway Homes understand the important role this site plays in the wider regeneration of Lennox Point, Tipner,' a statement submitted with its application said.
‘Whilst in the fullness of time the site may prove less prominent than neighbouring areas, it is nevertheless significant in providing the first phase in the redevelopment, whilst also serving as a distinct transition between the existing development to the south and future plans to the north and west.’
It added that it was hoped work could start later this year with the first home finished in 2022.
It is separate to the Tipner West development – now known as Lennox Point – which involves the so-called superpeninsula which is mooted as a 4,000-home car-free area for new businesses as well as houses.
The Tipner East development has been supported by the council's cabinet member for planning, councillor Hugh Mason, who said he was 'pleased' to see proposals for the site progressed.
However, the application has already attracted a series of objections.
Tracey Lewis, who lives in Tipner Lane, said the proposed access to the site off the road was ‘not suitable’.
‘It would [lead to] even more traffic and pollution past the school and risk to children,’ she said. ‘Twyford Avenue access is more suitable to avoid the bottleneck situation that is already there at school pick ups and drop offs.
Passing oncoming traffic on the Tipner Lane bend is already quite risky with large vehicles and buses. This would increase that risk.’
Somerville Place resident Jennifer Mackellar said there was ‘no way’ Tipner Lane could handle traffic from more than 200 new homes.
The application will be considered by council planning officers in the coming weeks.