A waiting list and increased inquiries combined with the housing shortage in the city had given Regency Park the confidence to move forward, he said.
''It's absolutely exciting and it's like Rotorua has been rediscovered. I've been living here for 55 years and it was retirement centre until the geothermal was taken away by the Government because prior to that they would retire here for treatments.
''Rotorua has been undervalued for some time as opposed to our neighbours in Tauranga and Taupo.''
A start date was yet to be confirmed but there had been good expressions of interest, ''even though we have not announced it yet'', Mr Walsh said.
Retirement Villages Association of New Zealand executive director John Collyns said Rotorua had seven retirement villages and he knew of another two that were yet to be built.
There was one proposed at Te Ngae Rd which was part of a mixed use development re-zone while the other one was in Matipo Ave - and those two could add another 150 residential units, he said.
Council records show in 2015, 34 Matipo Ave was rezoned and adopted into the District Plan under a Consent Order imposed by the Environment Court.
Demand existed as people realised they could release the equity in their home and move to a retirement village and live in a modern purpose-built, warm, comfortable place with like-minded people, Mr Collyns said.
Rotorua Chamber of Commerce chief executive Allison Lawton said the Regency Park development was a vote of confidence for the city and economy.
''If we consider the type of growth Tauranga and their wider region is enjoying, much of it is on the back of attracting superannuitants to their city and region. These people have a lot of disposable income, which is great for businesses and our economy.
''They are looking for superior retirement villages to relax and enjoy their lives, remembering they are relatively young in years and are active, meaning they will enjoy our city and spend their money - which is great for businesses.''
Rotorua mayor Steve Chadwick said it was good that ''more people are probably choosing to retire in Rotorua rather than the old traditional go to, where it was warmer. I think it is a sign of confidence in the way the community is going and that is lovely.''
There was obviously a gap in the market for retirees, she said.
''There is a real mixed need for mixed housing in subdivisions so that older people can live with young families around while others are looking for dementia care units or choosing residential facilities.''
The growing population meant a growing demographic with more elderly, ageing members in the community, she said.
Rotorua Grey Power president Russell Hallam said supply and demand was a major driver and it provided more housing options.
''I think if they meet the need for safe housing for older people and most people I know enter into retirement villages for security and the services available. I am not against Rotorua becoming attractive as a retirement destination. However, my worry is I do not know if it addresses the housing needs in the city.''
