Developer Peter Urban has submitted plans to knock down two houses on the corner of Glen Eira Road and Morrice Street to build a two-storey centre with underground parking for 27 cars.

The plans follow the closure of the nearby council-run Elsternwick Childcare Centre on Christmas Eve.

But Mark and Natasha Fleiszig, whose home neigbours the proposed development, have rallied residents against the project because they fear traffic problems will worsen.

‘‘I won’t even be able to get my own car out of my driveway,’’ Ms Fleiszig said.

She said her bedroom would be in view of an upper-level play area.

The Fleiszigs organised protest banners to be put up in the front yards of surrounding homes.

Mr Urban said his wife and daughter were childcare teachers and he wanted to establish a family business in an area which needed childcare. ‘‘I could make a lot more money if I built apartments here, but there are waiting lists at a lot of local centres.’’

Mr Urban said he expected his plans to be challenged at the Victorian Civil and Administrative Tribunal but was confident they would be approved because they met the council’s childcare centre policy.

He said parking regulations specified 0.2 spaces for each child and his proposal would provide 0.225 spaces.

He said the traffic would be staggered throughout the day as parents did not pick up and drop off children all at the same time.

‘‘I would be happy to talk to the residents, to have a meeting with them and talk through the plans,’’ he said.

Morrice Street resident Sonia Reitman said she would not have opposed apartments because the street suited residential property.

‘‘This is a commercial venture to make money. Why should we all suffer?’’