PLANS to develop a retirement village in Mt Martha have drawn opposition from residents who fear the project would disrupt the character of their neighbourhood.
Under the proposal, the site at 594 and 602 Esplanade and 165 Osborne Dr in Mt Martha, would have a total of 32 villas with a mix of one, two and three-bedroom configurations, arranged within a connected internal street network and pedestrian pathways designed to promote accessibility and community interaction.
The application by Keyton, the current landowner and retirement village developer, stated that the development “represents a site responsive design solution that has appropriate regard to both its planning and physical context”.
It also said it would provide “an attractive and sensitive response to the existing residential context while proposing an elegant and contemporary architectural language that incorporates a restrained material palette befitting its neighbourhood environs”.
Originally approved as a two-storey, 180-bedroom aged care centre, the development has been significantly revised under an amendment lodged by Keyton.
The amendment updates the plans “from ‘Development of an Aged Care Facility’ to ‘Use and development of a Retirement Village’,” replacing the previously approved building with 32 single-storey independent living units (ILUs) and a communal facility. Other changes include the removal of vehicle access to the Esplanade, adjustments to landscaping, and modifications to vegetation removal.
A purpose-built community building would also feature a cinema, communal lounge, multipurpose activity space, and an outdoor area with a barbeque. A landscaped linear park incorporating a pedestrian route and dog run would link the site to the foreshore.
Other proposed changes include vegetation removal, and amending the landscaping plans associated with the development.
The original permit was issued by Mornington Peninsula Shire in October 2018 to Lendlease Primelife, the retirement village arm of Lendlease, in collaboration with Catholic Healthcare Limited for an aged care facility development.
In October 2025, council approved a two-year extension, with the permit now due to expire in October 2027. Since then, Keyton has acquired full ownership of the site and shifted its strategic focus from aged care to retirement living, citing feasibility issues and market changes as drivers for the amendment.
The shire said a public notice period had finished with all submissions sent to the applicant for review.
“An assessment of this information will occur once it has been received,” the shire said.
A petition with 50 signatures from residents has also been sent to the council.
Among resident concerns are increased traffic, noise and lighting, pollution and waste management issues, removal of significant vegetation, which would harm wildlife and reduce privacy, and alter the character of the area.
Others worry about the impact of a new walkway to the Esplanade which would bring more foot traffic to the already busy Birdrock Beach foreshore, while the added 32 dwellings may strain amenities and emergency services.
“Many of us on Birdrock Ave have spent considerable time and effort over the years working with council to have suitable overlays approved so as to reduce the density of housing, environmental and potential traffic impacts on Birdrock Ave’s dirt road,” a resident, who wished to remain anonymous, said.
“Now we have 32 dwellings added over our fence line with one main entry and exit point onto Osborne Drive. This development will have an impact to the local character of this part of Mount Martha.
“The traffic report does not include any assessment of the expected increased traffic down Birdrock Avenue’s dirt road, which is the first road after the entry to Martha’s Point from Osborne Drive, to get to the Esplanade.”
According to Keyton, the “amendment aligns with Keyton’s strategic direction and responds to the increasing demand for retirement living options, proposing instead to extend the existing Martha’s Point Retirement Village”
“The site situated within a residential area characterised by low rise development and a mix of architectural styles.”
It also noted, “The proposal will result in no unreasonable amenity impacts having regard to overshadowing or overlooking and visual bulk, or as a result of car parking, traffic or waste management”.
First published in the Mornington News – 7 April 2026
