Demolition preparations are set to begin in Dandenong’s Little India precinct as part of a $600 million Capital Alliance redevelopment.
Nervous traders fear they will be squeezed out of the new Little India in Foster Street and surrounding streets, with several given notice to vacate by 30 November.
Long-term clothing retailer Sudesh Singh says traders on the high side of the street between Mason and Thomas streets are the first being told to vacate.
Some were not offered a new location in the precinct, while others are subject to further relocation at six months’ notice, Singh says.
“There’s no certainty.”
During the works, she’s been asked to consolidate her two businesses into one shop, Singh says.
Another trader with three shops has not been offered a new temporary site.
Singh says traders who leave now were unlikely to return. Traders will only survive in the new Little India if the rent is “reasonable”, she says.
“The new developer is saying we’ll be given a place in the new building, but not saying how much it will cost us.”
Currently the traders pay a discount rent to the State Government’s Development Victoria.
However, Housing and Building Minister Harriet Shing has stated they will be paying “market value” in the new development.
Most vacating traders had been offered relocation options, but some weren’t relocating due to “commercial considerations”, Shing said.
Traders relocating to other parts of Little India are being offered one month’s free rent but bearing costs such as moving, fittings and fixtures.
A Development Victoria spokesperson said early works to secure the site and prepare it for demolition are likely to start in early-mid 2026.
“We’re working with tenants to support them through the relocation process.
“We cannot comment on individual arrangements.”
Last year, the State Government approved the precinct’s masterplan, including 470 new homes, 2500 square metres of community space, a new supermarket and food market hall
The first stage will be building the Little India, retail and entertainment areas as well as residential apartments between Thomas and Mason streets.
Building all seven stages, including potentially a hotel, dwellings, offices, education and health services and cinema, will take up to 16 years.
Part of the Capital Alliance plan is to bring in “mini-majors” such as a supermarket chain to attract more shoppers, as well as family-friendly entertainment activities.
“We want to make it as vibrant as possible. It won’t be exclusively Indian traders,” Capital Alliance chief executive Mohan Du recently said.
He expected to start offering new tenancy agreements by early 2026, with existing traders given “first right” to occupy the revitalized precinct.
“We don’t want to see Little India disappear.”
Du’s vision is for a “new, modern and safe” precinct that’s active with office workers and businesses, not just “towers and towers of housing”.
“We think you also need to create a vibrant retail and entertainment precinct.”
The redevelopment is a giant progression in the State Government’s $290 million Revitalising Central Dandenong project, which began in 2006.
