The skyscraper, backed by First Base Developers, will replace the derelict London Park Hotel and provide 470 new homes, 40 per cent of which will be designated affordable housing.
The project is the latest in a number of schemes to be approved by Southwark Council, which form part of the growing resurgence of Elephant and Castle.
Southwark Council's executive member for regeneration, councillor Richard Thomas, said: 'This is the beginning of a fantastic time for the area, as more and more innovative developments start to come through.
'In the coming years, Elephant and Castle will become a deserved jewel in central London's crown, but even at this early stage, local people are already seeing for themselves how their neighbourhood is improving.
'And securing a new home for the Southwark Playhouse is very important, because regeneration is as much about community resources as it is about buildings.'