The event marks the start of a major transformation of North Toryglen with Glas-gow Housing Association (GHA) building 100 homes and 60 being built for sale by builder Cruden Group.
As well as homes, a new community base for local projects has been set up, a care home for the elderly is being built and plans are in the pipeline for shops.
Ms Burgess said: "The start of work on this site represents a major mile-stone for the community of North Toryglen.
"The Scottish Government is delighted that its investment in the area will not only provide housing where it's needed most, but also wider community benefits, including job opportunities and training for local people."
North Toryglen is one of eight areas in the city earmarked as a priority for regeneration by Transform-ing Communities: Glasgow (TC:G).
The community is also benefiting from jobs and training opportunities as a result of the work, which will be carried out in phases.
Cruden, as part of its contract with GHA, will provide training and employment opportunities for local people along with supporting community projects and businesses.
Future phases of the regeneration project are due to start in 2017 and continue until 2025.