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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.

childcare centre — Photo Credit: DA2024/1091

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.

Dan Murphy’s — Photo Credit: DA2024/1091

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

n the corner of Careel Head Road in Avalon Beach, the small, much-loved Careel Shopping Village has become the centre of a local storm. Plans to knock down the ageing cluster of shops and replace them with a two-storey building, featuring a Dan Murphy’s on the ground floor and a childcare centre just above it, have stirred up a wave of opposition among residents who say this is not what Avalon needs.

The plan, officially lodged as DA2024/1091, is still under review, with submissions open until 28 July. But for many locals, the debate isn’t just about bricks and mortar — it’s about what kind of place Avalon should be.

One Village, Two Stories

For decades, Careel Shopping Village has been a quiet stop for locals. It’s a place to grab a coffee, chat with neighbours and support small, family-run shops. Many residents say they were open to the idea of an upgrade. But when they heard that part of the plan included a 500-square-metre Dan Murphy’s liquor store right beneath a new early childhood education centre, the mood shifted quickly.

Locals worry that families dropping children off at daycare will now have to walk past racks of alcohol signs and delivery trucks unloading boxes of spirits and wine.

One resident wrote to Council, saying it just doesn’t make sense to mix young children and alcohol in one building. He’s not alone. Dozens of Avalon Beach residents have sent similar messages, urging the Council to reject the plan.

Dan Murphy's building — Photo Credit: DA2024/1091

Safety and Traffic at the Heart

Others fear the change will push the quiet corner into chaos. They talk about the intersection where Careel Head Road meets busy Barrenjoey Road — already known to flood when it rains and clog with cars during beach season. With parents dropping off children, delivery trucks for the bottle shop and more cars fighting for parking, some say the streets could become dangerous for kids and pedestrians alike.

A traffic report backs this up. The Council’s own engineer stated that the current traffic plan doesn’t adequately mitigate risks, particularly when delivery trucks and family cars share the same narrow driveways.

Health Experts Warn of Long-Term Harm

While residents argue over traffic and parking, health experts are focused on what the kids inside the centre might see. NSW Health’s Northern Sydney Local Health District says the plan is a step backwards for community health. Avalon Beach already has higher rates of alcohol-related harm than other parts of NSW. Placing young children so close to daily alcohol advertising, they warn, could normalise drinking at an early age.

Their report points out that there are already four other bottle shops within Avalon Beach, so adding another big outlet doesn’t make sense if the goal is to reduce alcohol harm.

Design Panel Echoes Community Fears

The Council’s design panel took a close look at the project, too. They agreed that the plan doesn’t protect families enough. They raised alarms about flood risks to the basement car park meant for childcare drop-offs. They also pointed out that the building’s layout does little to separate the bottle shop from the childcare entrance, something they say must change to make it safer for families.

Careel Bay Shopping Village Dan Murphy's — Photo Credit: DA2024/1091

A Local Identity at Risk

Many residents say the issue goes beyond just this site. Avalon is known for its small shops, surf breaks and a strong sense of local character. People here say they’re not against change; they just want change that fits. For them, the idea of dropping their kids off at daycare and walking past a major bottle shop feels wrong and out of place.

Careel Bay Shopping Village environment — Photo Credit: DA2024/1091

The developer insists the childcare centre will have a separate lift and entrance to keep kids away from the bottle shop. They say they are following all planning rules because the alcohol is sold packaged, not drunk on site.

But the pushback shows no signs of fading. Residents and health experts are still lodging submissions, hoping Council will hear their message: Avalon wants improvements, but not at the cost of its community feel.

Published 3-July-2025

Tag: Dan Murphy’s

Careel Shopping Village Avalon Redevelopment Approved Despite Community Objections