Melbourne’s Historic Dandenong Market Set for Major Upgrade

Developers propose building over 1,000 new homes in 12-storey towers surrounding Melbourne’s second-oldest market as part of a $1 billion redevelopment. The Dandenong Market precinct revamp in the city’s outer south-east aims to boost visitor numbers through added housing, expanded pedestrian areas, enhanced safety measures, and preservation of its lively multicultural atmosphere.

Preserving Heritage While Planning Ahead

Dandenong Market General Manager Ian Sumpter emphasizes that the consultation-stage plan focuses on future growth without altering the market’s cherished features. “Dandenong Market thrives, attracting about 5.6 million visitors annually,” he states. Last month, it hosted Melbourne’s largest Ramadan night market, drawing an estimated 1 million attendees over several weeks, including Prime Minister Anthony Albanese.

Sumpter highlights the need to maintain the market’s heritage, including multigenerational traders, loyal customers, and its culturally diverse vendors and patrons. “We want to keep it as a working market, but we can make things better,” he adds. The plan addresses concerns that some areas feel unsafe or unwelcoming, though Sumpter notes the market itself remains secure, with frequent returns of lost items like wallets, keys, and passports. “It’s quieter when the market’s closed,” he acknowledges.

Key Features of the Redevelopment

Proposals include opening closed street frontages along Clow and Lonsdale Streets, enlarging nearby Pioneer Park, and introducing up to 1,000 homes to foster a live-work-shop community active around the clock. “This creates a community that lives here, works here, shops here, and stays engaged 24/7,” Sumpter explains.

In a statement, Greater Dandenong Mayor Sophie Tan describes the market as “the heart of our community—a place of culture, connection, and commerce.” The council seeks community input on the plans.

Positive Feedback from Shoppers and Traders

Regular visitor Chantal Spiteri, who shops with her father Warren, appreciates the fresh, affordable produce and supports opening up the area. “Dandenong carries a stigma, so making it feel safe and welcoming is great—it’s a lovely place; my grandparents came here for years,” she says. Warren drives 20 minutes from Berwick for the experience and people. “We still come for that. I’m grabbing a Cornish pasty and pork roll—you can’t beat it!”

Sochi Keth, who meets her mother at the market often, welcomes more housing. “My mum considered selling to move closer since she visits daily—that would be ideal,” she notes.

Trader Rhianne Merito, operating a New Zealand street food stall, sees potential for modernization. “There’s room to grow. Updating it for 2026 while keeping the market vibe would work well,” she says.

Operating since 1866, Dandenong Market draws 5.6 million visitors yearly. Public comments remain open until April 10.