Capital Alliance and Development Victoria’s $2 billion master plan to revitalise Central Dandenong has been given the green light, with early works set to commence late next year.

The project aims to establish Central Dandenong as Victoria’s second capital city with plans for a 11,000 sqm new-build hotel, more than 480 new homes, retail spaces, state-of-the-art educational facilities, as well as commercial healthcare, aged care and knowledge precincts.

The project spans approximately two hectares of land along Dandenong Station and Bus Terminal, which was awarded to Capital Alliance in December 2020 following a tender process run by Development Victoria.

“This approval is a pivotal moment, which wasn’t without challenges in itself,” said Capital Alliance Founder and Managing Director, Mohan Du.

“Our vision from inception has not changed, it is to create a vibrant and inclusive community in Central Dandenong; one that will not only serve as a new commercial and residential hub but also reflect the diverse cultures that make this area unique.

“Over time, we will create a true 18-hour city, supporting activity and engagement day and night. Dandenong will undeniably become Victoria’s second capital city.”

The development will inject over $600 million in private investment and contribute an estimated $1.5 billion once operational per annum.

Capital Alliance is targeting a 5-star Green Star Communities Rating Certification, with sustainable features including water capture, extensive urban greening, and increased canopy cover to create a “climate-resilient, liveable environment”.

Construction is set to begin in 2026.