Dandenong’s Little India traders say their future is perilous, with a large swathe of vacant shops in Foster Street set for demolition for the first stage of a $600 million redevelopment.
Traditionally one of the busiest trading periods, Ramadan this year has been “dead” quiet in the iconic three-decade-old retail precinct.
As for the future, traders think things will get worse as demolitions start mid-year.
And they aren’t sure if they will be a part of Little India’s new proposed home – a laneway between Halpin Way and Foster Street, as part of a “village” of apartment and retail towers.
Steve Khan, who has been one of Little India’s founding traders since the 1990s, fears that the new laneway “will never have that Indian feel”.
“Regrettably the future of Little India looks bleak, it seems only a symbolic name with hardly any Indian traders will be left.
“Most shops will be occupied by other communities.
“Existing traders are reluctant to commit as most are unsure of the rent – hence it is more like a wait-and-watch policy.”
Khan has recently closed his café in Mason Street, after a long, bitter dispute with Development Victoria over an outdoor cooking facility.
He says that customers will shun the precinct as demolitions, road blocks, diversions and detours begin.
“Business is virtually dead in Little India at present with the likelihood of becoming worse once the demolition begins.
“Many traders who have moved out of this area will never come back as they would be well-settled in two or three years time.”
Bombay Fashions owner Sajjad ur Rehman – a former computer science analyst in Pakistan – has survived and reinvented himself as a clothing merchant since 1990.
His shop is up the street from the first stage of demolitions – it may be years before the wrecking ball visits him.
“We’ll look at what happens after that.”
More than a decade ago, Rehman joined other traders who fought for Little India’s survival after Revitalising Central Dandenong works sent customers away in droves.
As a result of the campaign, traders still pay discounted rent from Development Victoria. He’s not sure if he can absorb higher rent.
“I think it will be difficult for us to survive as Little India. I’m very uncertain about the future.”
Meanwhile, a nearby young business owner is hopeful that redevelopment will turn things around.
“We are hoping it brings more foot traffic and makes it more vibrant,” he says.
“I’m not sure if we’ll move into the laneway – I haven’t thought that far ahead.”
During the redevelopment works, he said “people might be deterred” particularly by the loss of parking.
“But we’ll just keep working hard and trying to make a living.”
Purabi Das of Boutique Apparels and Indian Ethnic Wear says the Ramadan period has been “dead” – and is expecting worse as demolitions start.
She’s been trading in Little India for 11 years and will stay till demolition.
“Whether we stay after that, it depends how much the rent goes up.”
The developer Capital Alliance’s chief executive Mohan Du told Star News last year that “we don’t want to see Little India disappear” but that “it won’t be exclusively Indian traders”.
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”.
His plan is to bring in “mini-majors” such as a supermarket chain to attract more shoppers, as well as family-friendly entertainment activities.
Last month, the Department of Transport and Planning approved a permit for the $100 million first stage of Little India’s redevelopment.
It comprises a “village of buildings” with 325 dwellings, three widely-separated towers up to 60 metres tall, a child care centre and a Little India laneway.
All properties on the 8.8 hectare site at 139-157 Thomas Street (abutting Foster and Mason streets and Halpin Way) are expected to be demolished by mid-2026.
The entire project is planned to unfurl over the next 16 years – including potentially a hotel/conference centre, a supermarket, food hall and community space, cinema and hospital.
































