Little India Traders Fear Displacement as Dandenong Redevelopment Looms
Little India Traders Fear Displacement as Dandenong Redevelopment Looms

For more than 30 years, Sudesh Singh has sold saris and clothing in Dandenong's Little India precinct in Melbourne's south-east. Now, she and other traders fear they may soon have to leave as a private redevelopment of the area threatens to price them out.

The precinct, which spills out from Dandenong railway station, is one of Melbourne's most culturally diverse hubs, with colourful clothing shops and sweet stores from Kolkata. But with construction set to begin in 2026, many traders say business is slow and some have already closed their doors.

Private developer Capital Alliance has been selected by Development Victoria to lead the revitalisation of a two-hectare site opposite the station, which includes Little India. The project, part of the wider Revitalising Central Dandenong initiative backed by $290m in state funding and $1bn in private investment, will deliver 470 new homes alongside commercial and retail spaces.

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While rendered images show a new 'Little India' with shops lining an open-air laneway, Singh said traders have not been given written assurances they will be able to lease shops in the new development. 'The bottom line is, we can only survive if the rental is reasonable,' she said, adding that the developer is offering tenancies on 'commercial terms that reflect market values'.

Victorian minister for development Victoria and precincts, Harriet Shing, told state parliament the new precinct would be a 'fantastic addition' that would 'reflect and respect the culture of the area'. However, traders remain sceptical. Purabi Das, who runs two clothing shops on Foster Street, said business has been sluggish due to competition from home-based sellers and the pressures of brick-and-mortar retail.

Singh, who has been asked to vacate one of her two stores by November, called for all current traders to be given a fair opportunity to stay. 'They need to be given a fair opportunity. Not an opportunity where they can't survive,' she said. An estimated completion date for the new precinct is expected within the next year.

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