Work will begin soon on more than 100 retirement homes in Canberra's north, nearly a decade after the development was first discussed.
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Goodwin Village Downer will be built on the corner of Melba and Bradfield streets across four buildings.
The four-storey apartments will include 109 independent living apartments and 20 assisted living apartments for residents requiring extra care.
In a first for the aged care provider, a portion of the apartments will be offered at an affordable price in partnership with community housing provider CHC Australia.
Goodwin Aged Care Services has appointed Manteena to build the project, which is expected to take 18 months to complete.
A sod-turning ceremony was held at the site to mark the beginning of construction.
It had taken many years to arrive at construction after a "very lengthy" design and approval process, Goodwin Aged Care Services chair Liesel Wett said.
The organisation first began discussions with CHC, the previous owner of the land, in 2015, she said.
"We were fortunate to finally reach agreement for the sale of the land in 2020," Ms Wett said.
A development application for the project was submitted in 2021 and construction was initially due to begin in 2022.
The project stalled when the development was partially approved in 2022 and required one of the buildings to be redesigned. Goodwin Aged Care Services resubmitted the plans and received approval in 2023.
More than half of the homes have sold
Demand for aged care services is expected to rise alongside Australia's ageing population.
A study by the ARC Centre of Excellence in Population Ageing Research found the population of Australians aged 65 and over is projected to grow by 54 per cent between 2021 and 2041.
The population of people aged 85 and over is expected to rise 140 per cent over the same 20-year period.
Ms Wett said the retirement village would help meet the "considerable demand for retirement living options" in the ACT.
The village has been designed to promote social interaction among residents through shared spaces and low-maintenance homes.
"It's fitting into the local neighbourhood and it's also [going to be] very contemporary, it's urban and it's going to be green," Ms Wett said.
Goodwin Village is the third stage of a large housing development built on the site of the former Downer Primary School.
CHC Australia developed the first two stages, comprising townhouses and apartments, which were completed in 2021.
The ACT government approved the controversial plan for 300 homes in 2015 despite backlash from the local community at the time.