Dandenong, VIC.

What are peoples thoughts on investing in Dandenong, Vic? It's earmarked by the Government for a 2030 transit city thingy. Anybody got any thoughts and some background on this suburb.
 
Got a bit of a name as the street drag and hoon capital of Victoria.....

Ethnically diverse, with over hallf the residents born overseas. Predominantly Vietnamese, Inidan sub continent and Afghani.

Cheers,

The Y-man
 
I think Dandenong has a lot of potential. It's like the 2nd CBD of Melbourne as it is the commercial centre of the south east of Melbourne.

I don't know what prices are like in Dandenong, but if the prices are right, could be a great area to invest in.
 
I think Dandenong has a lot of potential. It's like the 2nd CBD of Melbourne as it is the commercial centre of the south east of Melbourne.

Thing is, it's so far from BIG transport - i.e. ports and airports - that commercial operations seem to avoid it.

That's why I always say, the day they build an international airport in Pakenham.... :D

Cheers,

The Y-man
 
Thing is, it's so far from BIG transport - i.e. ports and airports - that commercial operations seem to avoid it.

That's why I always say, the day they build an international airport in Pakenham.... :D

Cheers,

The Y-man

I am no expert on how well the Dandenong commerce/industrial zone is serviced by transport infrastructure, but just looking at the satellite photo on google maps you can see south dandenong already is a major jobs hub.

I have a little bit of a bias as I grew up in Noble Park, so in my opinion investing in Dandenong is no more or less risky than investing in any other outer Melbourne suburbs and possibly even better than some as it will by its nature attract new immigrants, which are arguably one of the main drivers in the expected large population growth.
 
Thing is, it's so far from BIG transport - i.e. ports and airports - that commercial operations seem to avoid it.

That's why I always say, the day they build an international airport in Pakenham.... :D

Cheers,

The Y-man


HHmm international airport, why not build it in Dandenong itself and the residents of Dandenong will need passports and visas to travel to the rest of Melbourne :p

Sorry, bad joke.
 
I am no expert on how well the Dandenong commerce/industrial zone is serviced by transport infrastructure, but just looking at the satellite photo on google maps you can see south dandenong already is a major jobs hub.

I completely agree as far as industrials go - but as a "second CBD" concept, I think the requirements are different. Example, for a financial institution to locate their head office in Dandenong (INSTEAD of Melbourne CBD), it wouldn't (I assume) have to do with availability of industrial land etc.

Dandenong already seems to have the lot - a station, major bus hub, office space - but (big) businesses just don't seem to want to locate there. This is why the only thing I could think of was a major airport being the difference (and a shipping port - but I don't see how that influences big businesses headquatering in the Melb CBD).

Instead, we see offices popping up in less well serviced areas like Mt Waverley (FTG and B'burn Rd quarter), Mulgrave (Dunlop Rd) or Tally Ho.

Be interested to hear your thoughts.

The Y-man
 
Agree with Y-man.

The local "interests" are touting Dandenong as Melbourne's second CBD. Whilst it does enjoy a "jobs hub" for largely a blue collar workforce, the CBD (despite visons and grand plans that have been promoted for the last five or so years) is quite dishevelled.

I had interest for commercial investing around there. Personally too much risk for me. Plenty of vacant shops and whole floor plates and at times (not insignificantly sized) entire buildings.

I am not a pioneer in my investing stage of life right now. If all the grand notions and plans begin to unfold then I'll hop aboard for the ride, but not before. On the industrial front, it (South Dandenong) also has far higher lease rates than the west. Not sure why, as aside from one road, the M 1 (car park) the amenity is lacking IMO compared to the ports, rail and road infrastrucutre in the west and north around the 15 km rim. Far quicker (saving time costs) access to rail/ports and highway's and ringroads that lead somewhere, viz: Sydney or to Adelaide.

Paramatta is Sydney's second CBD and rightly deserves that title. We have nothing comparable to Paramatta here by way of distance to the city, amenity, demographics and serving as a gateway to at least 10 % of this nation's population.

As Y-man mentioned (Waverly and Mulgrave) in the office and white collar arena, I consider the "second centre" to use a loose term is Mt. Waverley (and to a lesser degree Glen Waverley). That whole precinct in and around North Clayton and Ferntree Gully Road, Blackburn Road, Stephensons and Ricketts Roads has a mozza of new developments with some national, multi-national and listed companies as tenants. Not sure if their headquarters are there though.

Back to Dandenong, and resi IP's, if one can buy under 400 K and it ticks the boxes on over 600 sq m (at least a duplex site) with a 3-4 BR rental box on it for now and it is approx 1-1.5 km from the train and the Plaza, worth a look. If not, better value and proximity to the actual Melbourne CBD elsewhere (North and West) IMHO.
 
I completely agree as far as industrials go - but as a "second CBD" concept, I think the requirements are different. Example, for a financial institution to locate their head office in Dandenong (INSTEAD of Melbourne CBD), it wouldn't (I assume) have to do with availability of industrial land etc.

...

Instead, we see offices popping up in less well serviced areas like Mt Waverley (FTG and B'burn Rd quarter), Mulgrave (Dunlop Rd) or Tally Ho.

Be interested to hear your thoughts.

The Y-man

I agree with the above, Australian cities tend to have monolithic CBD's as far as banking and finance goes and I do not think this will change. I presume big business stick to centralised CBD's because of telecommunications infrastructure and it's expense. I presume big business invest in areas that are well serviced with telecommunication infrastructure and data centres. I would think this rules out Dandenong for the time being.

Dandenong is definitely manufacturing/heavy industry focused and therefore would be prone to being effected by Victoria's export/import industry. When I mentioned commerce I had this in mind.
 
Dandenong comes up trumps in the latest Residex release of Melbourne's top performing suburbs over the last year.
Houses:
Dandenong's Housing Commission satellite, Doveton, led with 14.9%.
Others were Clayton South, Dandenong South, Eumemmering (satellite of Dandenong) and Dandenong
Units:
Ringwood East, Bundoora, Kilsyth, Montmorency

Worst performing for houses were almost all in the west:
Avondale Heights, Keilor, Maribyrnong, Taylor's Lakes, Flemington
Units:
Docklands, Carlton, Flemington, Cheltenham East, Brighton East
 
Agree with Y-man.

The local "interests" are touting Dandenong as Melbourne's second CBD. Whilst it does enjoy a "jobs hub" for largely a blue collar workforce, the CBD (despite visons and grand plans that have been promoted for the last five or so years) is quite dishevelled.

I had interest for commercial investing around there. Personally too much risk for me. Plenty of vacant shops and whole floor plates and at times (not insignificantly sized) entire buildings.

I am not a pioneer in my investing stage of life right now. If all the grand notions and plans begin to unfold then I'll hop aboard for the ride, but not before. On the industrial front, it (South Dandenong) also has far higher lease rates than the west. Not sure why, as aside from one road, the M 1 (car park) the amenity is lacking IMO compared to the ports, rail and road infrastrucutre in the west and north around the 15 km rim. Far quicker (saving time costs) access to rail/ports and highway's and ringroads that lead somewhere, viz: Sydney or to Adelaide.

Paramatta is Sydney's second CBD and rightly deserves that title. We have nothing comparable to Paramatta here by way of distance to the city, amenity, demographics and serving as a gateway to at least 10 % of this nation's population.

As Y-man mentioned (Waverly and Mulgrave) in the office and white collar arena, I consider the "second centre" to use a loose term is Mt. Waverley (and to a lesser degree Glen Waverley). That whole precinct in and around North Clayton and Ferntree Gully Road, Blackburn Road, Stephensons and Ricketts Roads has a mozza of new developments with some national, multi-national and listed companies as tenants. Not sure if their headquarters are there though.

Back to Dandenong, and resi IP's, if one can buy under 400 K and it ticks the boxes on over 600 sq m (at least a duplex site) with a 3-4 BR rental box on it for now and it is approx 1-1.5 km from the train and the Plaza, worth a look. If not, better value and proximity to the actual Melbourne CBD elsewhere (North and West) IMHO.

Well said, having a lot of people doesn't make it a "CBD". Ghettos also have al ot of people. The question is always the same, is it the demographics that will drive prices in the long-run and how far will this particular demographics drive prices? There's a limit on how much factory workers can afford. For the place to re-rate it needs to attract wealthier demographics. If you can see that happening then buy. I wouldn't hold my breath.
 
I agree with the above, Australian cities tend to have monolithic CBD's as far as banking and finance goes and I do not think this will change. I presume big business stick to centralised CBD's because of telecommunications infrastructure and it's expense. I presume big business invest in areas that are well serviced with telecommunication infrastructure and data centres. I would think this rules out Dandenong for the time being.

Dandenong is definitely manufacturing/heavy industry focused and therefore would be prone to being effected by Victoria's export/import industry. When I mentioned commerce I had this in mind.


I think it's a lot about stigma. Can you imagine Macquarie Bank setting its headquarters in the suburb? They'd probably lose 90% of their high net wealth clients. And imagine dialing in to Dubai for a conference. "Hi we're calling from Dandenong. Oh that's just the 2nd CBD of Melbourne, if that makes sense to you"
 
I went down for a first look at Dandenong last week. I complete on my second IP at Frankston next week and would feel comfortable buying another there, but there is an argument for diversification. I'm really looking to buy around $250K and have Dandenong and Melton (of which I currently know next to nothing) shortlisted. Today's Age story makes me wonder about Dandenong, but is this why it's cheap and might one expect the massive investment in the centre to bring the area up? Opinions welcome.

http://www.theage.com.au/national/t...-fear-to-tread-20100109-m00l.html?autostart=1
 
Hello,

I am deciding between Dandenong and Frankston too. One of the main reasons to consider Dandenong is that it has $290 million fund from the state government. Don't know it will be a Parramatta like suburb in the future. But Dandenong has a few things holding me back:

  • the shopping centres are not so impressive. The major shopping centre is small. The small shopping centres are pretty quiet. Some shops are only selling for around $100k. Maybe a good thing as there are headroom for improvement???
  • diversity of population and low household income. I think the job hub is in Dandenong South where lots of factories and industries jobs are available. That makes me wonder how much rent the residents are able and willing to pay...
  • the dandenong market project is on the way but the new extension of the market is not that impressive to me (concrete floor and colour bond roof...).
  • the train station was renewed not long ago but the condition is not so good.

I am considering buying a property for a sub-division project and reno the existing house. But I really don't want to move to the Dandenong until the suburn has really big improvement...
 
Hi All

Just reviving this thread as I am very close to pulling the trigger on a 2BR near the Dandenong Station area...

There seems to be a lot of money being spent on the area in general at the moment, particularly the Dandenong Rd part of the CBD, with footpaths being paved and widened, trees and nice lights going in. Very 'Bourke St Mall' when it is completed.

What are people's thoughts? I have been tossing up on a 1br closer to the CBD or 2br in Frankston / Dandenong. A lot of people on here are very pro Frankston at the moment, but vendors are catching on to this over the past few months.

I'm confident in some above average returns and the current yield suits my budget.

To all the experts, am I missing anything here?

Cheers,

TB
 
I live near Dandenong. Three great places of it are
1. Dandenong Plaza
2. Dandenong Farmer Market
3. Dandenong hospital

apart from it is very much filled with cheap asian shops and eating joints. Not many people like to rent in Dandenong as it far from the city and notorious for louts. Last week there were 2 criminal incidents a bomb scare at the railway station and Police nabbing a group of 20 criminals who had lot of weapons with them. It may be termed as a poor man's suburb or Sunshine of the East. Certainly not a area for PPoR IMHO.
 
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