A development application submitted with Wagga City Council on April 14 has gained approval to demolish five residential dwellings, located at 18 to 26 on Goonigul Avenue.

Wagga RSL Club general manager Andrew Bell said the company has owned majority of the homes for more than 20 years and it was time to put the properties to better use.

"The buildings are falling down, they are decrepit and so we will build a complex of residential units," Mr Bell said.

"We're still waiting on plans but we expect to see about five, three-bedroom units in a gated community.

"We should have the plans for the building within the next month and then we hope to progress with the demolition."

Mr Bell said there is increasing demand in Wagga for a locked-up area and expects this complex will attract a lot of demand.

"I think people feel comfortable with security," he said.

"There are some gated communities in Wagga and we just feel that those living next door to the club, might appreciate that level of extra security.

"There is demand for rentals in Wagga and it's a great location, right in the middle of town and there's significant demand."

Mr Bell said the buildings are not heritage listed and will be demolished in two stages at an estimated cost of $65,000.

"The properties have been rented until recently and we would expect the new units to be long term leases," Mr Bell said.

"They are outside the heritage conservation area and they won't be pulled down all at once, it will be a staged demolition."

The general manager said originally the RSL Club wanted to transform the run down properties into a child care centre, but chose to build a residential complex instead.

"We were hoping to build a child care centre, but we backed out of that to build these units instead," he said.

"Child care centres are very patchy; some are very full and some are half empty.

"We realised we didn't have the expertise to run a centre, so we chose not to get involved."

The removal of these five dwellings means that only one dwelling and a car park will remain on the southern side of Goonigul Avenue.

Another development application will be submitted with council for the residential units, once the plans are finalised.