The multi-storey development would be on the site of a recently demolished shopping centre.
The development application was submitted to the JDAP and has been referred to the City of Stirling for a responsible authority report.
City of Stirling approvals manager Greg Bowering said the development would introduce a diverse range of housing options to the area.
Local resident Michele Chadbourne said she was concerned the development would devalue surrounding properties and affect the amenity of the local area.
�I do agree with the need for high density housing in Dianella, but not seven-storey flats,� she said.
�Obviously with 163 units will come a lot more cars and as a pedestrian. It is dangerous enough now.
�There are many elderly and disabled people who have to cross this street on the way to the shopping centre every day.�
Ms Chadbourne said she felt let down by the City of Stirling�s consultation process.
�The City has made little effort to even let people know about the development, let alone comment on it,� she said.
Mr Bowering said the application was advertised for 21 days between Friday, March 27, and Friday, April 17. The City is preparing a responsible authority report for determination by the Metro North West JDAP.