The development at the corner of Mittagong Road and Victoria Street, adjoining Settlers Park, will include 23 three-bedroom units, two two-bedroom units, two one-bedroom units and a 1,500 square metre village green.

Five objections were received to the proposal, with objectors raising issues including the scale of the project, its location on a "gateway" site, and its proximity to Settlers Park.

Victoria Street residents made "strong representations" against the development, council was told.

The site was previously approved for a 72-room motel, function centre and restaurant.

However, developer Gary Turland dropped the motel plans after council rejected a proposal for a larger 106-room development.

Council noted that although the proposal did not meet all of the Seniors Living development standards, the site was suitable for such a development due to its proximity to services, while the apartment style housing offered a choice not currently available in Bowral.

Cr Duncan Gair said the Seniors Living application was a better development for the site than the motel plan.

"The location is one of the best areas for a SEPP5 development in regard to distance from the town centre, that does not require vehicular transport," he said.