Capital Alliance and Development Victoria have commenced demolition works for Stages 1 and 2, now known as Precinct 1, of the Revitalising Central Dandenong project.
The milestone represents a major step forward in the long-term transformation of Central Dandenong.
Demolition began at 91–93 Foster Street, signalling the start of the next chapter for the precinct.
The works will clear the way for a mixed-use destination that will bring new apartments and retail experiences to a growing community, one designed to encourage people to live, work, meet and spend time in Central Dandenong.
The staged demolition will proceed in phases, beginning with the Thomas Street shops in Stage 1, followed by the Foster Street shops in Stage 2 and the Mason Street shops in Stage 3.
Founder and CEO of Capital Alliance, Mohan Du, said the project has always been focused on delivering lasting benefits for the community.
“It represents the beginning of a transformation that will create a vibrant destination where people can live, work, shop and connect, while celebrating the diversity that makes Dandenong so unique,” Mohan said.
Development Victoria’s Executive General Manager Precincts, Niall Cunningham, said the start of demolition is a welcome step forward for the area, with the site being prepared for renewed community amenity including new retail, commercial and residential development, alongside a new retail precinct that will house both new and existing traders.
“This is about creating homes close to jobs, public transport and services, and giving people more reasons to spend time in the growing city centre,” Niall said.
The planning permit for Stages 1 and 2 was approved in March 2026, with demolition and site preparation works expected to be completed by October 2026.
Ahead of the works, temporary engineered fencing, Central Dandenong mesh banners and tree protection zones were installed across the site.
Construction of these initial stages will include a supermarket, food and beverage offerings, retail, commercial and residential developments, along with a new Little India precinct.
Once complete, Precinct 1 will deliver more than 300 new residences above approximately 12,000 square metres of new retail space, along with around 350 new car parks.
Later stages, Stages 3 to 7, covering Precincts 2 and 3, are expected to include additional community and open spaces, an entertainment district, and educational, medical, hotel and conference facilities.
The Revitalising Central Dandenong initiative is backed by a $290 million commitment from the Victorian government, aimed at transforming the area into a thriving economic hub.
Around $700 million has been invested to date in rejuvenating Dandenong’s city centre and re-establishing it as the capital of Melbourne’s growing south east region.
Once fully realised, the redevelopment is expected to attract more than $1 billion in private sector investment and create 5,000 jobs, further enhancing Dandenong’s appeal as a place to live, work and visit.
Development Victoria continues to work in partnership with the City of Greater Dandenong, other state government agencies and the private sector to deliver the project.
