John Harris said demand for housing was growing, with the shopping centre and childcare centre making it an attractive place to live.

That's why he believes a proposal by the Ballarat Catholic Diocese to build 10 townhouses could be a welcome addition for Dennington.

"If it is well designed and brings more people to the community, that's great," Mr Harris said.

The planning application is for three two-storey townhouses with three bedrooms and seven two-storey townhouses with two bedrooms at 11 Hood Street.

Each two-bedroom dwelling on the 2023-square-metre site would have a single garage, while the three-bedroom homes would have dedicated parking spaces.

"The subject site is near an activity centre and public transport corridor," the application states.

"It is noted that the development includes seven two-bedroom dwellings and therefore providing better for diverse and affordable housing as sought."

The application states the proposed medium density development at the site has strong strategic support. "The design is respectful of the area's emerging character, fair to the amenity of neighbours and providing for the scheme's emphasis on housing consolidation and diversity," it says.

Mr Harris said if the development was approved, it would add weight to the need for a neighbourhood centre for Dennington.

He said there were almost 20 community groups which used Dennington's hall.

"It would be great to have somewhere the community can meet," Mr Harris said.

Residents in the area have been sent a letter advising of the application.

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