Last week, the London Borough of Lambeth approved full planning consent for the redevelopment of the existing Tesco store at Kennington Lane.
Along with the new store, homes and offices, the development would include 1,159 square metres of flexible commercial space. The scheme would rise up to 17 storeys in height.
According to a planning report, which recommended approval, the density of the proposed development would be 1,392 habitable rooms per hectare, or 419 units per hectare. The report said the London Plan’s target density range for such sites is 200-700 habitable room per hectare or 70-260 units per hectare.
Officers said that, although "the density is beyond the upper limit of the target range", London-wide planning policy says it is "not appropriate" to apply the policy "mechanistically" and higher densities "can be acceptable where local context, design, residential quality and transport capacity are properly considered".
The report said the proposed development "is considered to both appropriately account for the local context while also creating its own; is of a high quality design and is located where public transport accessibility is highest".
Planners concluded that the proposed development "is not considered to exhibit symptoms of overdevelopment and is therefore of an acceptable density".
The development would include 35 per cent affordable housing, the report said, as required by local planning policy.
Overall, the report said that the scheme "would provide much needed housing of an acceptable quality, including a high level of affordable housing, at a density that makes optimum use of the site without being overdevelopment".
Consultancy Boyer acted on behalf of the applicants Berkeley Homes.
In March, the then communities secretary Sajid Javid approved plans for the 683-home redevelopment of a Sainsbury's store in east London.
In November last year, plans were approved for the redevelopment of a supermarket and petrol station in Camden, north London, into a mixed-use scheme to provide 573 new homes.
Last month, plans for a 499-home high-density mixed-use redevelopment of a business park in south London were refused against officers' recommendation for approval.