The assisted-living one and two-bedroom hostel units will be the first stage of "Anthem", a project by the Blissett Group, the owners of Henley Brae.

Stage II of the project, to be the subject of a separate development application, would include a 60-place residential aged care facility and a 16-place residential dementia care service.

Council previously deferred a decision in order to clarify outstanding issues relating to the development.

Developer Matthew Blissett and Retford Road resident Vivien Stephens-Reicher, on behalf of the Retford Road Residents Action Group, addressed council's meeting on Wednesday.

Mrs Stephens-Reicher said the scale of "Anthem" was similar to that of the Bowral Private Hospital and the two-storey, 60 metre frontage would be out of context amongst the single storey residences on Retford Road.

"This is out of line with the objectives of the 2(a) planning zone," she said. "Even though it might be permissible, it is not standard."

Mrs Stephens-Reicher said residents were concerned about combined traffic impact of "Anthem" and the 59-place childcare centre recently approved in Retford Road.

Mr Blissett said that although "Anthem" was designed to comply with Seniors Living Policy (SEPP5) guidelines and was being assessed as a Seniors Living Policy development, he had not used SEPP5 provisions to over-ride council's planning policies.

"(The development) is consistent with council's vision on allowing low and high care accommodation in residential areas and providing substantial incentives to high care facilities," he said.