"People want a living situation in central Warkworth where they don't need to be reliant on their ability to drive," he said.
The town's three supermarkets, cafes, banks, medical centres and waterfront would be within 200m walking distance of the site between Queen St and Neville St. The project would bring more year-round activity to the town which relied on the summer season when thousands passed through.
Earlier, residents expressed concerns about the six-storey height of new buildings, a prominent stand of oak trees and the future of the Warkworth Inn, parts of which date back to 1864 and 1875.
Mr Murphy said the proposed three blocks were not out of character, given other modern buildings in the town's commercial area.
The inn's two-storey facade and pitched roof would screen the development and he believed it should be a focal point as a quality pub, restaurant or function centre.
However, the inn was in poor condition and needed much work.
Warkworth Grey Power president Anne Martin said there were mixed views about retirement villages in the town.
"Some will like to be able to look out the window and watch life and all the hustle and bustle; others will want to hear the cows mooing."
She preferred her home on the busy State Highway 1.
Resident Bruce Manson said he supported the project.
"There is a need and it's very efficient use of that piece of land."
Historian and long-time resident Beverley Simmons said she opposed such a concentration of buildings on that site.
"I would not have a bar of it myself. Who wants to be cooped up with 160 other old people?"