The government has acquired 68 flats in the Kensington Row development near Grenfell Tower in north Kensington, where the massive fire ripped through nearly 120 flats on June 14 resulting in at least 79 dead or missing and leaving hundreds homeless.
The building was home to some 600 people.
The replacement apartments are classed as "newly built social housing" in a complex where the price of private homes starts at 1.5 million pounds.
The UK's Department for Communities and Local Government said extra public money had been found so the flats could be fitted out more quickly, and more builders had been taken on.
"The residents of Grenfell Tower have been through some of the most harrowing and traumatic experiences imaginable and it is our duty to support them. Our priority is to get everyone who has lost their home permanently rehoused locally as soon as possible, so that they can begin to rebuild their lives," said UK communities minister Sajid Javid.
The complex includes a 24-hour concierge, swimming pool, sauna and spa and private cinema. It is not yet clear if the Grenfell residents will have access to the facilities, which are normally not included for those in affordable housing.
"We've got to start by finding each of them a home. Somewhere safe and supportive, close to their friends and the places they know, so they can start to rebuild their lives. We will work night and day to get these homes ready," said Tony Pidgley, chairman of the Berkeley Group, which built the homes.
A spokesperson for the Corporation of London said: "We are ready to do everything we can to help the victims of the terrible fire at Grenfell Tower. We already provide council housing across seven London boroughs and are committed to delivering 3,700 new homes on sites across the capital.
"These plans are being discussed and agreed in principle as matter of urgency as part of the response by councils across London to support the team working on recovery efforts."
"I know that for those who are suffering those answers cannot come quickly enough," he said.
UK ministers have indicated that the rain-screen cladding used on the outside of the tower block, believed to be the reason for the fire spreading instantly, may have been made of material banned in Britain.
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