Childcare centre above Dan Murphy’s approved in Avalon’s Careel Shopping Village, despite community and health authority objections.
Background of the Proposal
Plans to redevelop Careel Shopping Village at 1 Careel Head Road, Avalon Beach, were lodged on 11 September 2024 as Development Application DA2024/1091. The proposal included demolition works and the construction of a new two-storey mixed-use complex with basement parking, retail space, and a childcare centre.
The application was placed on exhibition from 30 June to 28 July 2025, attracting significant public submissions. The estimated cost of the project was $7,246,888.
Community Objections
More than 220 submissions were lodged opposing the project. Local residents expressed concern about the location of a 500-square-metre Dan Murphy’s store directly beneath a childcare facility. Issues raised included the potential exposure of children to alcohol advertising, increased traffic near the intersection of Careel Head Road and Barrenjoey Road, and flooding risks affecting the proposed basement car park.
The Northern Sydney Local Health District advised against the proposal, citing links between alcohol marketing exposure and youth drinking. Community groups also argued that Avalon already had several liquor outlets nearby and that the redevelopment would be out of character for the area.
The Ruling
Northern Beaches Council initially issued a deemed refusal of the application. The developer, Grex Holdings, appealed the decision to the Land and Environment Court. In early September 2025, the court upheld the appeal with amended plans following conciliation between the council and the developer.
The plans include a separate entrance and lift for the childcare centre, independent of the bottle shop, in response to concerns about access and safety.
Current Retail Context
The Careel Shopping Village site also includes other retail spaces for lease, with tenants such as a pizza café and a pie shop. Leasing documents highlight multiple opportunities for shops ranging from 47 to 129 square metres, with off-street parking provided.
Looking Forward
With the court’s approval, the redevelopment of Careel Shopping Village will proceed, combining retail businesses with a 60-place childcare centre above a Dan Murphy’s store. The decision followed extended debate between community members, health authorities, and the developer, with changes made to address some concerns.
Published 22-Sep-2025
