The National Savings and Investments building in Boydstone Road opposite the Silverburn Shopping Centre will be flattened, with 600 workers moved to two separate sites — a main office in Glasgow city centre and a mail processing operation in East Kilbride.
House builder Persimmon is to construct 450 properties on the 70-acre site, with its sale expected to swell the Treasury's coffers by up to £10 million.
A commercial property industry source, who asked not to be named, said: "What's happening is they're selling the land and everything that's on the site to maximise the return to the state.
"I would estimate that it's worth around £10 million. Persimmon is the preferred developer but it will need to take the whole lot down because you're talking about hundreds of units."
Persimmon sales manager Sharon Spinelli confirmed the plans. She said: "Persimmon Homes West Scotland is carrying out surveys and investigation works to support a detailed planning application.
"Persimmon is targeting a site start in the spring of 2015 and is looking to provide 450 two, three, four and five-bedroom homes for sale.
"The demolition of the National Savings and Investments building will form part of the engineering works."
Greater Pollok councillor Rashid Hussain said: "It's housing that we require. The area is one of the fastest-growing for young families."