Dandenong South Industrial Deal Underscores Growing Pressure on Infill Supply

Rare large‑scale landholding with operational capability draws strong owner‑occupier interest amid tight market conditions.  

A landmark industrial transaction in Melbourne’s South East has reinforced the resurgence of owner‑occupier demand and the growing importance of securing strategic, infrastructure‑rich assets, with Colliers and Cameron announcing the successful sale of 9 Colemans Road, Dandenong South.

The purpose‑built manufacturing and outdoor storage facility, originally developed for Frankston Concrete Products, was transacted as a going concern, with the operating business included in the sale and acquired by a confidential local group within the concrete sector.

Positioned on a substantial 40,196 square metre infill landholding with approximately 20 per cent site coverage, the property offers scale, modern improvements and surplus heavy‑duty hardstand, a combination that has become increasingly difficult to replicate across Melbourne’s South East industrial market. With limited availability of comparable sites and consistently low vacancy across the region, assets offering immediate operational capability and expansion potential are commanding heightened interest from owner‑occupiers seeking certainty in a constrained supply environment.

James Stott, National Director, Industrial & Logistics at Colliers, said, “This is a landmark transaction not just for Dandenong South, but for the broader industrial market. We are seeing a definitive shift as occupiers step in to secure high‑quality infill assets, particularly where they can acquire both the real estate and an operational platform in a single transaction, with M&A activity increasingly intersecting with property decisions.

“Assets with this level of land scale, power capacity and surplus hardstand are exceptionally scarce in today’s environment. That scarcity is continuing to drive strong owner‑occupier demand, particularly in the South East where industrial land supply is effectively constrained,” Mr Stott added.

Gordon Code, Co‑Head of Victoria, Industrial & Logistics at Colliers, said, “The South East remains Australia’s most tightly held and strategically significant industrial market. Vacancy levels remain well below long‑term averages and opportunities to secure large, infill sites of this nature are increasingly rare. Transactions like this demonstrate the depth of confidence occupiers have in the region and their willingness to act decisively to secure long‑term infrastructure.

“We expect this momentum to continue, with owner‑occupiers playing an increasingly prominent role alongside domestic and institutional capital, particularly where assets support long‑term operational certainty.”

The inclusion of the Frankston Concrete Products business as part of the transaction enabled the incoming owner to immediately occupy a fully functioning, purpose‑built facility, reducing development risk and allowing for scalable growth within an established industrial hub servicing Melbourne’s expanding population and infrastructure pipeline.

David Johnson, Director at Cameron, added, “The ability to acquire a substantial landholding with functional improvements and a proven operating platform is exceptionally rare, particularly in a location as tightly held as Dandenong South. The strength of interest in this asset reflects a clear flight to functionality and long‑term operational control.”

As supply constraints continue to shape Melbourne’s industrial market and quality assets become harder to replace, transactions of this calibre are expected to become increasingly competitive, reinforcing the South East’s position as one of Australia’s most resilient and sought‑after industrial regions.