Dandenong South Property Market
& Suburb Profile

While it has a very small residential population - fewer than 130 people as of late 2025 -it is the daily destination for tens of thousands of workers and contains some of Australia’s most advanced manufacturing and logistics facilities.

The suburb’s identity is defined by its role as a premier industrial innovation cluster. It is home to global and national giants such as Alstom, which manufactures rail transport solutions, and Volgren, Australia’s largest bus body manufacturer. In late 2025, the region’s significance was further highlighted at the Victorian Manufacturing Hall of Fame Awards, where several Dandenong South businesses were recognized for excellence in aerospace, sustainable building systems, and pharmaceutical R&D (including Ego Pharmaceuticals). The precinct is also a major hub for the automotive sector, recently welcoming a new $114 million state-of-the-art facility for the Walkinshaw Group, which has consolidated its national operations into a single 100,000-square-metre site in the suburb.

Significant infrastructure upgrades are currently transforming the flow of goods and people through the region. In June 2025, a major milestone was reached with the removal of the Progress Street level crossing. This project involved building a new road bridge connecting Progress Street to Fowler Road, providing heavy vehicles with safer, direct access to the South Gippsland Highway and contributing to a "boom gate-free" Pakenham railway line. Additionally, works are progressing on a new shared-use path along Dandenong Creek, providing better cycling and pedestrian connectivity for the local workforce. These improvements are part of a broader effort to modernize the precinct's logistics capabilities and reduce congestion on critical arterials like the South Gippsland Highway and Frankston-Dandenong Road.

While almost entirely industrial, Dandenong South features unique pockets of natural and recreational space. The suburb contains 12 parks, though they cover a small percentage of its total area. The Dandenong Police Paddocks Reserve and the Dandenong Creek Trail offer essential green corridors that buffer the industrial zones. For the small residential community and the local workforce, the suburb provides specialized recreation, such as the Dandenong Stadium, which is a premier venue for basketball and volleyball in the southeast. Cultural and social life for the region is primarily anchored in the neighbouring Dandenong CBD, where residents and workers access the famous Dandenong Market and the Afghan Bazaar precinct.

From a property perspective, Dandenong South is one of the most sought-after industrial real estate markets in Australia. Residential property is extremely rare and tightly held, with an average held period of over 13 years for the few existing homes. The real estate market here is instead driven by the development of "future-proofed" industrial estates like Nexus Dandenong South, which offers state-of-the-art warehousing for brands like Bunnings and Amazon. With record-low industrial vacancy rates and a multi-billion dollar revitalisation pipeline for the Greater Dandenong area, the suburb remains a critical pillar for investors focused on the logistics, manufacturing, and supply chain sectors.