A bid to halt the sale of Aviemore in St Martin to the Jersey Development Company has failed.
It means the site of the former care facility will be sold for an initial £1.3 million.
Backbench politician Deputy Alex Curtis had want to put the breaks on the transaction, and for the public to be asked about the future use of the land.
Read: Deputy attempts to halt sale of Aviemore to JDC
States members voted 13 in favour, 29 against Deputy Curtis' proposal. There were three abstentions.
During the three-hour long debate, ministers revealed JDC intends to build up to 10 three-bedroom homes there.
They insisted that the value of the sale of the public land to JDC could be £2.5 million, once it has planning consent. It had been listed for sale at offers in excess of £3 million.
Several members spoke of the need for housing:
"I am confident that we will get planning permission for ten really good quality houses." - Chief Minister, Lyndon Farnham.
"People are entitled to have homes, and we should all be supporting the building of homes in this island." - Elaine Millar, Treasury Minister.
"I thought we had a housing crisis! I thought people were desperate for semi-detached, three-bedroom homes in the countryside.
Infrastructure Minister Andy Jehan said the sale to JDC represented the best value for taxpayers, and warned against any delay.
Proceeds from the sale will be used to support care leavers.
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