Greater Dandenong Infrastructure Projects, VIC

A manufacturing and logistics economy with industrial, school and energy work shaping the project program

Economic base

Greater Dandenong’s economic character is industrial and metropolitan-facing. Manufacturing accounted for 14.7% of employed residents in 2021, with construction at 8.4%, retail trade at 9.6%, health care and social assistance at 12.6%, and transport, postal and warehousing at 5.8%. The business base reinforces that pattern: in June 2025 there were 1,362 registered manufacturing businesses, 3,930 transport, postal and warehousing businesses, 3,440 construction businesses and 1,176 wholesale businesses. These are registered businesses, not workplace employment, but together they describe a broad production, distribution and services platform. Its metropolitan-facing role links industrial premises to supply chains, freight movements and a large surrounding consumer base.

The industrial base is accompanied by consumer and community services. Registered businesses in June 2025 included 1,723 in retail trade, 955 in health care and social assistance, 904 in accommodation and food services and 1,375 in professional, scientific and technical services. Census employment also included education and training at 5.1%, financial and insurance services at 3.2% and administrative and support services at 3.9%. This mix supports an economy that combines goods production and movement with everyday services, rather than relying on one activity alone. It also gives local demand several channels, including trade, care, education, food services and professional support.

Project program

The council’s project program is led by active industrial and school work, with proposed energy work extending the direction of activity. Completed work spans industrial, transport, retail and school activity. The largest priced active or proposed work is at a large scale, with school and industrial work the leading types in that group. This describes a program that combines productive land and community infrastructure, while its forward direction adds an energy component to the established industrial and education focus. The combination points to continued attention to employment areas, essential services and the infrastructure that supports daily movement and community use.

Transport work is shared with other councils, so its significance is regional rather than solely local. The program’s direction is therefore mixed: industrial and school work is under way, energy work is proposed, and completed transport, retail, school and industrial work provides the prior pattern. Building approvals add a current measure of construction activity. In the 12 months to 30 June 2026, non-residential building work approved to proceed was $374.2m, equal to 0.86× the council’s own three-year average by value. Read alongside the project program, this distinguishes the direction of planned work from the volume of building work approved in the latest period.

Economic connections

Industrial and transport activity aligns with the council’s manufacturing, wholesale and logistics base through freight and access: production needs movement of inputs and goods, while shared transport work may improve connections across council boundaries. The large-scale emphasis on industrial work is consistent with continued attention to productive land and operating capacity. Proposed energy work could support industrial enablement where electricity or related infrastructure is needed, although the project record supports a cautious reading of the economic effect. These mechanisms matter because industrial activity depends on reliable access, usable sites and sufficient energy capacity as well as business capability.

School work aligns with population-serving capacity and the education share of local employment, while industrial and construction activity creates a direct channel for local contracting and site work. In 2021, construction represented 8.4% of employed residents, and registered construction businesses numbered 3,440 in June 2025. These links describe potential mechanisms rather than guaranteed outcomes: project activity may add capacity or demand for specialised services, but project scale is not the same as local economic output. The current program connects physical works with the council’s existing economic structure without showing that it will change that structure. Construction activity can also connect community and industrial work through trades, logistics and site services.

Outlook

The near-term picture combines a broad industrial economy, a forward program that adds proposed energy work, and continuing population demand. Estimated resident population reached 168,684 in 2025, with a change of 1,937 or 1.2%. Natural increase contributed 1,017 people and net overseas migration contributed 3,932, while net internal migration was -3,012. This composition makes service capacity, housing delivery and labour market conditions important parts of the council’s economic outlook. It also means that demand is shaped by both household formation and migration, with implications for schools, care, housing and access to employment areas.

The main indicators to track are the composition of project work, building approvals and labour market conditions. Non-residential approvals were below the council’s own three-year average by value, while residential approvals were above their own benchmark in the latest 12 months. The labour force was 88,279 in 2026-Q1, with 6,637 unemployed and an unemployment rate of 7.5%. Together these measures will show whether activity is broadening across industrial, community, energy and housing work, and whether local labour demand is absorbing available workers. Their direction will help distinguish population pressure, approved construction and employment conditions as related but separate parts of the outlook.

For council and planning staff

The housing target is 1,875 homes a year from July 2026, within a target of 52,500 net new dwellings from 2023 to 2051. Dwellings approved since July 2023 were at 27% of the yearly pace the target needs for the period July 2023 to July 2026. Population change in 2025 was 1,937 people, including natural increase of 1,017, net overseas migration of 3,932 and net internal migration of -3,012. Service capacity included 4 hospitals, 110 approved centre-based childcare services and 16 residential aged care homes. Together, these figures set housing delivery against population change and the services used across different life stages.

For buyers’ agents and investors

The 2021 housing and household profile was mixed: 35% of occupied private dwellings were rented, 31.3% were owned with a mortgage and 30% were owned outright. Average household size was 2.9 persons and median age was 36. A relatively mobile population profile accompanied this structure, with 42.7% living at a different address five years earlier. Median weekly household income was $1,453 and median weekly personal income was $618. The labour force participation rate was 55.9% in 2021, while the unemployment rate was 7.5% in 2026-Q1. New dwelling approvals in the 12 months to July 2026 comprised 217 houses and 391 townhouses, apartments and other dwellings. The profile combines varied tenure, moderate household size and substantial movement between addresses.

For builders and developers

In the 12 months to July 2026, 608 dwellings were approved: 217 houses and 391 townhouses, apartments and other dwellings. The approvals rate was 3.6 dwellings per 1,000 residents and 1.17× the council’s own three-year average. The value of residential building work approved, including new homes, alterations and additions, was $321.3m. Non-residential building work approved in the 12 months to 30 June 2026 was $374.2m and 0.86× the council’s own three-year average by value. Construction businesses numbered 3,440 in June 2025, including 1,035 employing businesses. Construction accounted for 8.4% of employed residents in the 2021 Census. These measures place approved residential and non-residential work beside the size of the construction business base and its employment footprint.

Key takeaways

• Greater Dandenong’s economic base is led by manufacturing, logistics, construction and related wholesale activity, with substantial consumer and community services alongside it.
• The project program is active in industrial and school work, proposes energy work, and includes completed industrial, transport, retail and school work; the largest priced active or proposed work is at a large scale.
• Population growth is being supported mainly by natural increase and overseas migration, while the labour market recorded a 7.5% unemployment rate in 2026-Q1 and non-residential approvals were 0.86× the council’s own three-year average.

Sources

• Manufacturing — ABS Census 2021
• Registered businesses, Manufacturing — ABS Counts of Australian Businesses
• Construction — ABS Census 2021
• Retail trade — ABS Census 2021
• Health care and social assistance — ABS Census 2021
• Transport, postal and warehousing — ABS Census 2021
• Registered businesses, Transport, Postal and Warehousing — ABS Counts of Australian Businesses
• Registered businesses, Construction — ABS Counts of Australian Businesses
• Registered businesses, Wholesale Trade — ABS Counts of Australian Businesses
• Registered businesses, Retail Trade — ABS Counts of Australian Businesses
• Registered businesses, Health Care and Social Assistance — ABS Counts of Australian Businesses
• Registered businesses, Accommodation and Food Services — ABS Counts of Australian Businesses
• Registered businesses, Professional, Scientific and Technical Services — ABS Counts of Australian Businesses
• Education and training — ABS Census 2021
• Financial and insurance services — ABS Census 2021
• Administrative and support services — ABS Census 2021
• Non-residential building approvals, latest 12 months — ABS Building Approvals
• Non-residential building approvals versus this council's own three-year average, weighted by the value of those approvals — ABS Building Approvals
• Estimated resident population — ABS Regional Population
• Unemployment rate — Small Area Labour Markets
• Population change — ABS Regional Population
• Population change — ABS Regional Population
• Natural increase — ABS Regional Population
• Net internal migration — ABS Regional Population
• Net overseas migration — ABS Regional Population
• Dwellings approved versus this council's own three-year average — ABS Building Approvals
• Labour force — Small Area Labour Markets
• Unemployed persons — Small Area Labour Markets
• Target: 52,500 net new dwellings from 2023 to 2051 (1,875 a year) — Plan for Victoria
• Dwellings approved since July 2023 against the yearly pace the housing target needs (100% is on pace) — Plan for Victoria
• Open public and private hospitals — AIHW MyHospitals
• Approved centre-based childcare services — ACECQA national register
• Residential aged care homes — AIHW GEN aged care
• Rented — ABS Census 2021
• New houses approved, latest 12 months — ABS Building Approvals
• Owned with a mortgage — ABS Census 2021
• Owned outright — ABS Census 2021
• Average household size — ABS Census 2021
• Median age — ABS Census 2021
• Lived at a different address 5 years ago — ABS Census 2021
• Median household income (weekly) — ABS Census 2021
• Median personal income (weekly) — ABS Census 2021
• Labour force participation rate — ABS Census 2021
• Townhouses, apartments and other dwellings approved, latest 12 months — ABS Building Approvals
• Dwellings approved, latest 12 months — ABS Building Approvals
• Dwellings approved per 1,000 residents, latest 12 months — ABS Building Approvals
• Value of residential building work approved (new homes, alterations and additions), latest 12 months — ABS Building Approvals
• Employing businesses, Construction — ABS Counts of Australian Businesses