Advertisement

Is Dandenong headed for a fire sale?

In recent weeks numerous vacant central Dandenong development lots have been placarded with 'Land for sale" signage, representing a sizeable chunk of real estate within the precinct controlled by Places Victoria. According to the Victorian Government’s property development agency who controls Dandenong's CBD under the Revitalising Central Dandenong initiative, "Further sites will be brought to the market in line with demand."

Four to five sites have been spotted with signage, predominantly on and around Walker Street which represents the epicentre of recent and current construction activity in the precinct.

Up for grabs - another Dandenong development site

State held development sites aren't the only to be offered at the moment with two enduring privately held blocks also set for sale. Both 285 Thomas Street and 27 Scott Street have been on the radar for some time with the latter maintaining a sales campaign for over two years, but to no avail.

Pointing to the difficulties in establishing a viable high-density residential market in Dandenong, 285 Thomas Street began as the design highlighted below only to morph into an office project once residential demand was deemed to be inadequate. 27 Scott Street was initially a taller building and had Platinum Construction appointed as builder, but now also finds itself for sale as a vacant development site.

285 Thomas Street & 27 Scott Street, Dandenong

It's not all a state of flux in Dandenong with three projects maintaining a degree of forward momentum in the area. The Australian Taxation Office's new Dandenong outlet at 11-13 Robinson Street continues to make rapid progress with the 13,803 square metre facility expected to be tenant ready by September 2015.

In addition Burbank's Mosaic apartment project is nearing completion while Pellicano have initiated construction works at Quest Dandenong, a 55 bed serviced apartment building situated on the corner of Mason and Walker.

The current state of play

Comment

Observing Revitalising Central Dandenong since inception, it's fair to say demand for the precinct has been moderate; sufficient, almost measured but by no means overwhelming. Project delivery has been patchy with a fair list of projects that have never seen the light of day, so it's somewhat baffling that Places Victoria has released multiple sites for development simultaneously.

While demand for inner-city sites is rampant, those same factors underpinning Melbourne do not apply to Dandenong. It's difficult to see the rationale behind offering these sites for sale concurrently when market demand doesn't look to match.

Whether it be an opportunistic and well timed move by Places Victoria or essentially a fire sale of underperforming assets, the results will make for interesting reading.

Tags: 

2 comments

Nicholas Harrison's picture

Hard to compete with the proposed 230,000 square metres of office space with 10,000 car parking spaces and direct access to Eastlink up the road:

http://www.caribbeanpark.com/

Back to top
Riccardo's picture

Thats why Melbourne is a fraud. They talk urbanism, but continue the exurban business park mentality like its 1978.

Its pleasing in Sydney that the remaining off-network areas are being joined up, even talk of whether the Military Rd corridor might get its underground.

Far from perfect, but a very long way from letting the SE councils approve massive office developments away from public transport.

Back to top
Advertisement

Development & Planning

Wednesday, December 13, 2017 - 12:00
The swirl of development activity in Footscray has found another gear as new projects are submitted for approval, or are on the verge of beginning construction. Two separate planning applications have been advertised by Maribyrnong City Council; their subsequent addition to the Urban Melbourne Project Database has seen the overall number of apartment developments within Footscray in development swell to 40.

Policy, Culture & Opinion

Monday, November 20, 2017 - 12:00
The marriage of old and new can be a difficult process, particularly when the existing structure has intrinsic heritage value. In previous times Fitzroy's 237 Napier Street served as the home of furniture manufacturer C.F. Rojo and Sons. Taking root during 1887, Christobel Rojo oversaw operations though over time the site would become home to furniture manufacturer Thonet.

Visual Melbourne

Friday, August 25, 2017 - 07:00
The former site of John Batman's home, Batman's Hill is entering the final stages of its redevelopment. Collins Square's final tower has begun its skyward ascent, as has Lendlease's Melbourne Quarter Commercial and Residential precinct already. Melbourne Quarter's first stage is at construction and involves a new 12-storey home for consultancy firm Arup along with a skypark.

Advertisement

Transport & Design

Friday, December 15, 2017 - 11:00
Infrastructure Victoria unveiled a new round of research into its larger programme of work dealing with managing transport demand. The authority contracted Arup and KPMG to produce the Melbourne Activity Based Model (MABM) and while it is new, it is considered fit for purpose in the strategic context.

Sustainability & Environment

Tuesday, October 24, 2017 - 12:00
Cbus Property's office development for Medibank at 720 Bourke Street in Docklands recently became the first Australian existing property to receive a WELL Certification, Gold Shell and Core rating. The WELL rating goes beyond sustainable building features with a greater focus on the health and well-being of a building's occupants.