They have petitioned their Member of Parliament (MP) Ellen Lee, in a bid to get the centre to move elsewhere.
The Ministry of Health plans to set up a 570 square-metre elder care centre at the void decks of Blocks 860 and 861 at Woodlands St 83.
But nine in 10 residents in the area are against the idea.
Some unhappy residents said the centre will affect the value of their flats.
One resident said: "Actually we are very squeezed for space here. There is a Residents' Committee office at the void deck, and next to it there is a childcare centre. So there is very little space left for children to play in."
MP for Sembawang Group Representation Constituency, Ellen Lee, said: "My conflict is how to balance the needs of these elderly who need this service -- not only the elderly but also their caregivers -- with that of residents who feel that their space has been violated, will be taken away from them."
To deal with a greying population, the Ministry of Health aims to build more elder day care centres in housing estates.
Currently, there are 54 such centres in housing estates, out of which, 41 are located at void decks.
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