Sleepouts built in China are due to arrive in New Zealand in containers in the next two months.
Graeme Reynolds, of Auckland's Countrywide Homes and Dynamic Homes, said he was working with a business partner here and another in China so a factory based in Jinan could prefabricate sleepouts using assembly line construction.
Insulated, double-glazed cabins with a deck are being advertised for $9990 to $12,000, promoted as "cheaper than rent".
Dewey Yu, the Auckland-based business partner, said a four-bedroom house made via this method might sell for about $176,000.
Countrywide Homes at 516 Chapel Rd in Flat Bush is advertising the cabins, which Reynolds said met a demand.
"The reason we are producing these is that being under 10sq m, they do not require building consent," Reynolds said.
"They come as a kitset, floor, four walls and roof and are put together in about an hour. The walls are joined at the corners," he said.