The National Savings and Investments building in Boydstone Road and 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.
The Evening Times has learned that house builder Persimmon is to construct 450 properties.
The sale of the 70-acre site is expected to swell the Treasury's coffers by up to £10m.
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 £10m. 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 currently 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."
Councillor Rashid Hussain, who represents Greater Pollok, said: "It's housing that we require. The area is one of the fastest growing for young families.
"It will obviously boost the local economy and create jobs too. I welcome this development."
A spokesman for National Savings and Investments (NS&I) said the sale of the site could be completed by June 2015.
He said: "NS&I's site in Glasgow is much larger than our business now requires.
"Later in 2014 staff working at NS&I's Glasgow site will be moving into two new buildings: a main office in the city centre and, for our mail processing and scanning team, a site in East Kilbride.
"NS&I is selling its current site at Cowglen for redevelopment and the proceeds will be returned to HM Treasury."
The Evening Times revealed last month that Silverburn's owners have submitted a planning application to expand the centre on the opposite side of the M77, at a site behind the NS&I building.