The Classic Pharmacy in St George's Road could relocate to a prime spot overlooking the Elephant & Castle roundabout after councillors voted to grant planning permission.
Proposals for the new pharmacy – to be created in garage space at Perronet House – were approved by Southwark Planning Sub-Committee B late on Tuesday night.
Councillors heard objections to the application from Richard Reynolds, secretary of the Perronet House Tenants' & Residents' Association, who claimed that there were "numerous errors" in the planning officers' report.
He argued that the garages below Perronet House are well-used by residents for parking and storage, and the only reason that so many garages are currently empty is that the council has stopped accepting new lettings.
Mr Reynolds alleged that drug users who obtain their prescriptions from the pharmacy had been responsible for antisocial behaviour and described the shop as "a blight to the area".
These claims were rejected by pharmacist Atul Patel who told councillors that there was no record of trouble linked to customers of his shop and that only three methadone users collect their prescriptions from the pharmacy.
"The area will possibly, after 21 years, lose the pharmacy," said Mr Patel.
He said the promised new premises at Perronet House would be larger and enable him to offer more services, including consultation rooms for chiropody and other treatments.
"We don't think that this is the right location," said Cllr Noakes, who also expressed concern that the council – as owner of Perronet House – had failed to consult properly with residents in the block.
Article updated on 15 July to make clear that Mr Patel rejected Mr Reynolds' claims.