Economic Profile
For the City of Greater Dandenong
January 2013
Table of Contents
Summary .................................................................................................................................................. i
1
Greater Dandenong Geography ...................................................................................................... 1
2
Greater Dandenong People ............................................................................................................ 2
3
4
5
2.1
Recent Population Growth...................................................................................................... 2
2.2
Forecast Population Growth ................................................................................................... 3
2.3
Age .......................................................................................................................................... 3
2.4
Household Income .................................................................................................................. 4
Greater Dandenong Workers .......................................................................................................... 6
3.1
The Labour-Force .................................................................................................................... 6
3.2
Industry ................................................................................................................................... 6
3.3
Occupation .............................................................................................................................. 7
3.4
Travel to work patterns........................................................................................................... 8
3.5
Unemployment ..................................................................................................................... 10
3.6
Qualifications ........................................................................................................................ 10
3.7
Language ............................................................................................................................... 11
Greater Dandenong Jobs .............................................................................................................. 12
4.1
Occupational Structure ......................................................................................................... 12
4.2
Origin of Workers in Greater Dandenong ............................................................................. 14
4.3
Industry Structure ................................................................................................................. 15
4.4
Income of workers in Greater Dandenong ........................................................................... 16
Greater Dandenong Businesses .................................................................................................... 18
5.1
Business by Industry ............................................................................................................. 18
5.2
Business Size ......................................................................................................................... 19
6
Greater Dandenong Output .......................................................................................................... 20
7
Greater Dandenong Property ....................................................................................................... 22
7.1
Residential Property Prices ................................................................................................... 22
7.2
Value of Building Work ......................................................................................................... 23
8
Conclusion ..................................................................................................................................... 25
9
References .................................................................................................................................... 26
January 2013
Greater Dandenong Economic Profile
I
Summary
The City of Greater Dandenong is a suburban municipality with a mix of residential areas, large
activity centres, extensive industrial precincts and green wedge land used for pastoral activities and
water treatment purposes. The industrial precincts form part of one of Australia’s most significant
and productive manufacturing areas; and Central Dandenong has long been considered
Metropolitan Melbourne’s second city centre. These activities generate many jobs, with Greater
Dandenong being a net importer of labour from surrounding municipalities.
The City has been a first home for successive waves of migrants in the continuing post-war period.
This has created a vibrant cultural mix but has also resulted in some labour-market disadvantages
through lack of qualifications and English language skills. High local unemployment is one result of
this factor.
Indicator
Greater Dandenong
Metropolitan Melbourne
142,591
4,107,945
Annual population growth rate, 2001 to 2011
1.7%
1.8%
Forecast annual population growth rate, 2012 to 2026
1.1%
1.4%
Households with a weekly income less than $600 in
2011
30%
21%
Households with a weekly income more than $2,000
in 2011
16%
31%
Labour Force (September 2012)
64,030
2,266,200
Jobs
76,578
1,682,712
142%
97% (Victoria)
Manufacturing (27%)
Health Care & Social Assistance
(Victoria)(12%)
19%
35%(Victoria)
91.5%
94.6%
30%
na
Manufacturing
Healthcare & Social Assistance
(Victoria)
12,525
405,602
Property and business
services
Property and business services
Proportion of businesses with up to 19 employees,
2011
93%
96%
Gross Regional Product or Gross State Product per
resident 2012
$74,857
$57,087 (Victoria)
$383,415
$424,918
$2,200
$1,600
Estimated resident population in 2011
Employment self sufficiency (jobs in the area
compared with employed residents), 2011
Largest industry for employed residents, 2011
Employed residents who are managers or
professionals 2011
Employment rate, June Quarter 2012
Proportion of resident workers who work in Greater
Dandenong, 2011
Industry that generates most jobs within the area,
2011
Estimated number of businesses, 2011
Industry with largest number of businesses, 2011
Median house prices, 2012
Value of non-housing building works per person 2011
January 2013
Greater Dandenong Economic Profile
II
January 2013
Greater Dandenong Economic Profile
1
1 Greater Dandenong Geography
In this profile, statistical information is provided for Greater Dandenong as a whole and,
occasionally, for its constituent Statistical Local Areas (SLAs) of which there are two, as shown in the
diagram below.


Greater Dandenong (C) – Dandenong SLA includes the suburbs of Dandenong and parts of
Dandenong South
Greater Dandenong (C) – Balance SLA includes the suburbs of Springvale, Keysborough and parts
of Dandenong South
Figure 1:
Statistical Local Areas in Greater Dandenong
Source: ABS, CData Online
January 2013
Greater Dandenong Economic Profile
2
2 Greater Dandenong People
2.1 Recent Population Growth
In 2011, the City of Greater Dandenong had an estimated resident population of 142,591 people
(ABS, 2011). Between 2005 and 2011, the City grew at an average of 1.7% per year. This growth has
arisen from new housing developments throughout the municipality, particularly in Keysborough
and around Central Dandenong (including the redevelopment of the former Dandenong saleyards).
In comparison, population growth rate was 1.8% for Metropolitan Melbourne as a whole between
2005 and 2011.
Figure 2:
The figure below illustrates recent population growth in the Greater Dandenong.
Recent population growth, Greater Dandenong, 2001 to 2011
Source: ABS, Regional Population Growth Australia, 2011
January 2013
Greater Dandenong Economic Profile
3
2.2 Forecast Population Growth
The forecast by the Department of Planning and Community Development (DPCD, 2012) suggests
that the population of Greater Dandenong will grow by 1.1 % per year over the period between 2012
and 2026. This compares with a forecast average growth of 1.4% per year for Metropolitan
Melbourne as a whole over the same period. These forecasts are based on the projected share of
Victoria’s growth captured by each area and on the expected housing development in the respective
areas.
The following chart provides a comparison of recent growth as estimated by the ABS and forecasts
of growth prepared by State Government and by Greater Dandenong Council for the municipality
over the period to 2026. The Council and State Government forecasts have broadly similar
outcomes. The Council predicts that growth will slow when housing land in new estates (particularly
in Keysborough) becomes fully developed.
Figure 3:
Forecast population growth, Greater Dandenong, 2001 to 2026
Source: DPCD, Victoria in Future 2012; City of Greater Dandenong, 2012, Population Forecasts
2.3 Age
The following figure illustrates the anticipated change in the number of people in particular age
groups in Greater Dandenong over the period from 2011 to 2026.
January 2013
Greater Dandenong Economic Profile
4
Figure 4:
Forecast change in population of age groups, Greater Dandenong, 2011 to 2026
Source: DPCD, Victoria in Future 2012
The figure shows:



growth in all age groups
substantial growth in the 30 to 49 and 60+ age groups, particularly in those aged 75 to 84
significant growth in school age children (5 to 19 years)
Care should be taken in interpreting these figures given the discussion about the forecasts above.
Nevertheless, the implications of these changes include:



a reduction in the proportion of working people to non-working people, with the potential for a
reduction in average income levels (since retirement incomes are generally less than working
incomes)
increase in demand for retirement services (health, adult education, gentle recreational
activities etc)
continued growth in demand for school places and jobs in education
This pattern compares broadly with the forecast for Metropolitan Melbourne as a whole, although
Greater Dandenong does appear to have relatively low growth in its working age groups and high
growth in school age children compared with Metropolitan Melbourne as a whole.
2.4 Household Income
In 2011, Greater Dandenong had a median weekly household income of $953. This compared with
$1,333 for households in Metropolitan Melbourne as a whole. Allowing for the larger average
number of persons per household in Greater Dandenong than Metropolitan Melbourne as a whole
January 2013
Greater Dandenong Economic Profile
5
(2.8 compared with 2.6), these figures indicate that the residents of the Greater Dandenong have
incomes that are substantially lower than average.
The following figure shows the spread of household incomes in Greater Dandenong compared with
Metropolitan Melbourne as a whole (not including not stated income households).
Figure 5:
Average weekly household incomes, Greater Dandenong and Metropolitan
Melbourne, 2011
Source: ABS, Census of Population and Housing, 2011
In Greater Dandenong 30% of households have an income less than $600 per week compared with
21% in Metropolitan Melbourne as a whole. At the other end of the scale, only 16% of households
in Greater Dandenong have an income of $2,000 or more per week compared with 31% in
Metropolitan Melbourne as a whole.
The low household incomes reflect the occupational structure of the resident labour-force, the
relatively high unemployment and relatively low educational qualifications of residents.
January 2013
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6
3 Greater Dandenong Workers
3.1 The Labour-Force
In 2011, the Census of Population and Housing recorded 64,030 residents of Greater Dandenong
who were working or looking for work. This represented a crude participation rate of 46% (that is
46% of all residents were working or looking for work) in comparison with 55% in Metro Melbourne.
This relatively low participation rate reflects a higher proportion of single income families and higher
levels of disadvantage in the labour market.
3.2 Industry
The following table shows the industry that residents of Greater Dandenong work in.
Table 1:
Industry of resident’s employment, Greater Dandenong and Metropolitan
Melbourne, 2011
Industry
Greater Dandenong (c)
Metropolitan
Melbourne
No.
%
%
Agriculture, forestry & fishing
520
1%
0%
Mining
48
0%
0%
12,345
23%
11%
442
1%
1%
Construction
3,459
6%
8%
Wholesale trade
3,173
6%
5%
Retail trade
5,720
11%
11%
Accommodation & food services
3,352
6%
6%
Transport, postal & warehousing
3,051
6%
5%
851
2%
2%
1,830
3%
5%
510
1%
1%
Professional, scientific & technical services
2,377
4%
9%
Administrative & support services
2,120
4%
3%
Public administration & safety
1,738
3%
5%
Education & training
2,349
4%
8%
Health care & social assistance
5,225
10%
11%
494
1%
2%
Other services
2,096
4%
4%
Inadequately described/Not stated
2,370
4%
3%
Total
54,070
100%
100%
Manufacturing
Electricity, gas, water & waste services
Information media & telecommunications
Financial & insurance services
Rental, hiring & real estate services
Arts & recreation services
Source: ABS, Census of Population and Housing, 2011
January 2013
Greater Dandenong Economic Profile
7
Compared with Metropolitan Melbourne, Greater Dandenong has a very high proportion of resident
workers engaged in manufacturing. Greater Dandenong has a relatively small proportion of resident
workers engaged in higher order services such as finance, professional, scientific and technical
services, education and health. These figures reflect, in part, the occupational structure outlined
below.
3.3 Occupation
The occupation of resident workers is shown in the table below.
Table 2:
Occupation of resident workers, Greater Dandenong and Metropolitan Melbourne,
2011
Occupation
Greater Dandenong
no.
Metropolitan
Melbourne
%
%
Managers
3,788
7
13
Professionals
6,691
12
22
Technicians and Trades Workers
8,583
16
14
Community & Personal Service Workers
4,787
9
9
Clerical and Administrative workers
7,092
13
15
Sales Workers
4,731
9
10
Machinery Operators and Drivers
7,341
14
6
Labourers
9,213
17
9
Inadequately Described/ Not Stated
1,848
Total
54,074
Source: ABS, Census of Population and Housing, 2011
3
100
2
100
Compared with Metropolitan Melbourne as a whole, Greater Dandenong has a relatively high
proportion of machinery operators, drivers and labourers and a relatively low proportion of
managers, professionals and other white collar workers.
This pattern accounts for the relatively low incomes in Greater Dandenong.
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Greater Dandenong Economic Profile
8
3.4 Travel to work patterns
The table below shows that 30% of working residents work in Greater Dandenong. The other
residents travel outside the municipality to work. The largest proportion of residents work in the
neighbouring municipalities of Kingston, Monash, Melbourne and Casey (a total of 36%). Other
residents travel to the inner city or elsewhere in the southern and eastern suburbs.
Table 3:
Location of work for employed residents of Greater Dandenong, 2011
15,038
Proportion of
residents who travel
to this destination
to work
28%
Kingston
5,920
11%
Monash
5,756
11%
Melbourne
4,168
8%
Casey
2,041
4%
Knox
1,667
3%
Glen Eira
1,114
2%
Whitehorse
1,057
2%
Stonnington
1,017
2%
Frankston
879
2%
Port Phillip
824
2%
Yarra
733
1%
Bayside
731
1%
Boroondara
673
1%
Maroondah
481
1%
Mornington Pen.
306
1%
Yarra Ranges
192
0%
Cardinia
180
0%
Manningham
159
0%
Hobsons Bay
150
0%
Darebin
135
0%
Hume
127
0%
Brimbank
124
0%
Other Destination
10,598
20%
Total
54,070
100%
Municipality or other area
Residents who travel
to this destination to
work
Greater Dandenong
Source: ABS, Census of Population and Housing, 2011
January 2013
Greater Dandenong Economic Profile
9
In common with most metropolitan municipalities, more local people work outside the municipality
than within it. Some residents of Greater Dandenong live close to employment areas in surrounding
municipalities such as Frankston, Kingston, Knox and Monash. And the developing metropolitan
freeway network makes it very easy for residents of Greater Dandenong to access employment
throughout Metropolitan Melbourne.
January 2013
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10
3.5 Unemployment
The chart below illustrates the change in the official rate of unemployment in Greater Dandenong
over the period from March 2005 to September 2012. Unemployment in Greater Dandenong has
been consistently higher than Metropolitan Melbourne as a whole.
In the more recent period (September 2012) unemployment in Greater Dandenong was 8.7%, much
higher than Metropolitan Melbourne (which had unemployment of 5.5%). These figures indicate
that Greater Dandenong has a disproportionate share of people who are susceptible to
unemployment, likely to be a result of low skills and lack of qualifications. They also show that
Greater Dandenong is more sensitive to economic shocks as unemployment fluctuations were felt
more than in Metropolitan Melbourne during GFC.
Figure 6:
Unemployment rate, Greater Dandenong and Metropolitan Melbourne, March
2005 to Sep 2012
Source: Department of Education Employment and Workplace Relations, 2012, Small Area Labour Markets
Australia
3.6 Qualifications
The following table details the type of qualifications held by residents aged over 15 years.
It shows that of those residents with a qualification, 28% had a Bachelor degree or higher in Greater
Dandenong compared with 49% in Metropolitan Melbourne as a whole. Postgraduate qualifications
were similarly relatively low, accounting for 5% of those with a qualification in Greater Dandenong
and 10% in Metropolitan Melbourne as a whole.
January 2013
Greater Dandenong Economic Profile
11
Table 4:
Qualifications of residents, Greater Dandenong and Metropolitan Melbourne, 2011
no.
%
Metropolitan
Melbourne
%
2,729
5%
10%
891
2%
5%
Bachelor Degree
10,917
21%
34%
Advanced Diploma and Diploma
8,803
17%
17%
Certificate
14,725
28%
28%
Education inadequately described or not stated
13,724
27%
6%
Total
51,789
Source: ABS, Census of Population and Housing, 2011
100%
100%
Qualification
Greater Dandenong
Postgraduate Degree
Graduate Diploma and Graduate Certificate
The relatively low level of qualifications amongst residents is one reason that incomes in the
municipality are low.
3.7 Language
Cultural diversity is a valued characteristic of the municipality and can be an economic strength,
particularly in dealing with exporting and importing, as well as in generating cultural tourism.
However, an inability to speak English is a strong disadvantage in the Metropolitan Melbourne
labour-market. The following table provides a comparison between the level of migrants and their
English language skills in Greater Dandenong and Metropolitan Melbourne as a whole.
Table 5:
Origin and language, Greater Dandenong and Metropolitan Melbourne, 2011
Origin and language
%
Metropolitan
Melbourne
%
40%
67%
Greater Dandenong
Persons born in Australia
Persons born overseas
60%
33%
Speaks only English at home
10%
12%
Speaks another language and speaks English well or very well
35%
17%
Speaks another language and speaks English not well or not at all
14%
4%
Proficiency in English not stated
Source: ABS, Census of Population and Housing (adjusted), 2011
1%
0%
A majority of residents in Greater Dandenong were born overseas compared with little over a third
in Metropolitan Melbourne as a whole. The table shows that in Greater Dandenong 14% of people
have difficulties speaking English, compared with only 4% in Metropolitan Melbourne as a whole. In
Greater Dandenong the number of persons born overseas increased by 18% since 2006, whereas,
the number of people born in Australia decreased by less than 2%.
Greater Dandenong has been home to successive waves of migrants, particularly those who are
refugees or who have been settled in Australia on humanitarian grounds. This explains the relative
higher proportion of Greater Dandenong residents who are not proficient in English and, to some
extent, explains the relatively low levels of formal qualifications within the labour-force.
January 2013
Greater Dandenong Economic Profile
12
4 Greater Dandenong Jobs
4.1 Occupational Structure
The following table provides a breakdown of the occupations of people employed in Greater
Dandenong.
Table 6:
Occupation of workers in Greater Dandenong and Metropolitan Melbourne, 2011
Occupation
Greater Dandenong
Victoria
No
%
%
Managers
10,144
13%
13%
Professionals
10,029
16%
23%
Technicians and Trades Workers
11,167
15%
14%
Community & Personal Service Workers
4,165
5%
9%
Clerical and Administrative workers
12,860
17%
15%
Sales Workers
6,502
8%
10%
Machinery Operators and Drivers
10,685
14%
6%
Labourers
7,745
10%
9%
Inadequately Described/ Not Stated
1281
2%
1%
100%
100%
Total
76578
Source: ABS, Census of Population and Housing, 2011
Whilst Greater Dandenong has the same proportion of managerial jobs compared with Metropolitan
Melbourne as a whole, it has a much lower proportion of professionals. Greater Dandenong also has
a lower proportion of community service workers and a higher proportion of machinery operators,
drivers and labourers which is a result of the large manufacturing and distribution functions in
Greater Dandenong.
The following table provides a comparison between the jobs in Greater Dandenong and the
occupations of resident workers. It shows the employment self-sufficiency in each occupation in
Greater Dandenong, that is, the number of jobs as a proportion of working local residents.
January 2013
Greater Dandenong Economic Profile
13
Table 7:
Occupational structure of jobs in Greater Dandenong and employment self
sufficiency, 2011
Jobs in
Greater
Dandenong
Resident
Workers
Net export
of jobs
Employment
self-sufficiency
No.
No.
No.
%
Managers
10,144
3,788
6,356
268%
Professionals
12,029
6,691
5,338
180%
Technicians and Trades Workers
11,167
8,583
2,584
130%
Community & Personal Service Workers
4,165
4,787
-622
87%
Clerical and Administrative workers
12,860
7,092
5,768
181%
Sales Workers
6,502
4,731
1,771
137%
Machinery Operators and Drivers
10,685
7,341
3,344
146%
Labourers
7,745
9,213
-1,468
84%
Inadequately Described/ Not Stated
1281
1,848
22,504
142%
Occupation
Total
76,578
Source: ABS, Census of Population and Housing, 2011
54,074
Notes: Employment self-sufficiency is measured as the percentage of jobs in Greater Dandenong to resident
workers (figures of less than 100% indicate a net export of workers in that category).
The table shows that there are approximately 76,578 jobs in Greater Dandenong compared with
54,074 resident workers. The activities in Greater Dandenong generate a net import of 22,504
workers. The highest net imports are of managers, professionals and clerical workers. Greater
Dandenong has a minor net export of labourers and community & personal service workers; that is,
there are more of these workers living in Greater Dandenong than there are these types jobs in the
municipality.
Greater Dandenong is clearly a major employment destination for people throughout the region.
Proportionately more of the higher skill and higher paid jobs require workers from outside the
municipality.
January 2013
Greater Dandenong Economic Profile
14
4.2 Origin of Workers in Greater Dandenong
The following table shows the origin of people who work in Greater Dandenong
Table 8:
Origin of workers in Greater Dandenong, 2011
Origin of workers
Casey
Greater Dandenong
no.
20,553
%
27%
15,038
20%
Frankston
5,724
8%
Kingston
5,181
7%
Monash
4,688
6%
Knox
4,476
6%
Cardinia
3,731
5%
Mornington Peninsula
2,638
3%
Yarra Ranges
1,711
2%
Whitehorse
1,663
2%
Glen Eira
1,597
2%
Maroondah
1,156
2%
Bayside
1,006
1%
Boroondara
989
1%
Manningham
754
1%
Stonnington
729
1%
Port Phillip
517
1%
Baw Baw
380
0%
Elsewhere
4,047
5%
Total
76,578
100%
Source: ABS, Census of Population and Housing, 2011
The table shows that Greater Dandenong is the source of employment for many people throughout
the southern and south-eastern suburbs of Metropolitan Melbourne. Indeed, Greater Dandenong
provides more jobs for residents of Casey than it does for residents of Greater Dandenong. This is
understandable since the major job concentrations in Dandenong South are closer to some residents
of Casey than to many residents of Greater Dandenong. The adjoining municipalities of Casey,
Frankston, Kingston, Monash and Knox are the source of 54% of all workers in Greater Dandenong.
January 2013
Greater Dandenong Economic Profile
15
4.3 Industry Structure
The following table provides a breakdown of the industries of the jobs in Greater Dandenong. It also
provides a comparison with the industry of resident workers and shows the employment selfsufficiency in each industry.
Table 9:
Industry structure of jobs in Greater Dandenong and employment self-sufficiency,
2011
Industry
Agriculture, forestry & fishing
Jobs in Greater
Dandenong
No.
%
Resident workers
No.
%
Emplo
yment
self
sufficie
ncy
%
276
0%
520
1%
53%
35
0%
48
0%
73%
22,811
30%
12,345
23%
185%
800
1%
442
1%
181%
Construction
3,857
5%
3,459
6%
112%
Wholesale trade
8,054
11%
3,173
6%
254%
Retail trade
6,930
9%
5,720
11%
121%
Accommodation & food services
2,093
3%
3,352
6%
62%
Transport, postal & warehousing
5,042
7%
3,051
6%
165%
483
1%
851
2%
57%
Financial & insurance services
1,765
2%
1,830
3%
96%
Rental, hiring & real estate services
1,066
1%
510
1%
209%
Professional, scientific & technical services
2,342
3%
2,377
4%
99%
Administrative & support services
1,732
2%
2,120
4%
82%
Public administration & safety
3,193
4%
1,738
3%
184%
Education & training
4,405
6%
2,349
4%
188%
Health care & social assistance
6,815
9%
5,225
10%
130%
416
1%
494
1%
84%
Other services
3,288
4%
2,096
4%
157%
Inadequately described/Not stated
1,174
1%
2,370
4%
50%
76,578
100%
54,070
100%
142%
Mining
Manufacturing
Electricity, gas, water & waste services
Information media & telecommunications
Arts & recreation services
Total
Source: ABS, Census of Population and Housing, 2011
Note: Employment self-sufficiency is measured as the percentage of jobs in Greater Dandenong to resident
workers.
January 2013
Greater Dandenong Economic Profile
16
By far the largest industry within Greater Dandenong is manufacturing, which accounts for nearly
22,811 jobs or 30% of all employment in the City. Wholesale provides over 8,000 and retail trade
provides almost 7,000 local jobs or 11% and 9% of the total employment respectively. Health care
and social assistance sector employment grew 18% since 2006 to provide almost 7000 jobs in 2011.
Greater Dandenong has a net import of workers to satisfy the requirements of enterprises in the
municipality. Industries that have a relatively high net import of workers include manufacturing,
utilities, wholesale trade, transport, property services, public administration and education. The
municipality has a net export of workers in primary industries, accommodation and food services,
information, media and telecommunications, financial services and administrative services.
4.4 Income of workers in Greater Dandenong
The following chart illustrates the income of people working in Greater Dandenong.
Figure 7:
Gross weekly income of people at work in Greater Dandenong and Metropolitan
Melbourne, 2011
Source: ABS, Census of Population and Housing, 2011
The incomes of people employed in Greater Dandenong (GD) are towards the middle of the scale;
that is, there are proportionately fewer very low and very high incomes than in Victoria. The median
weekly income of workers in Greater Dandenong ($890) is slightly higher to that in Victoria as a
whole ($873).
This is in contrast to the incomes of residents which are much lower, on average, than in
Metropolitan Melbourne as a whole. This indicates that local residents are not securing the higher
January 2013
Greater Dandenong Economic Profile
17
paid jobs located within the municipality and this is consistent with previous data showing the
relatively low levels of skill and qualification of local residents.
January 2013
Greater Dandenong Economic Profile
18
5 Greater Dandenong Businesses
5.1 Business by Industry
The ABS produces an estimate of business numbers in each SLA based on modified data from tax
records. The latest estimate of numbers is reproduced in the table below.
Table 10:
Estimate of the number of businesses, Greater Dandenong and Metropolitan
Melbourne, June 2011
Industry
Agriculture, forestry and fishing
Mining
Manufacturing
Electricity, gas and water supply
Construction
Wholesale trade
Retail trade
Accommodation, cafes and
restaurants
Transport and storage
Communication services
Finance and insurance
Greater Dandenong (C)
Melbourne
no
%
%
143
1%
2%
24
0%
0%
1412
11%
5%
56
0%
0%
1827
15%
16%
937
8%
5%
1070
9%
7%
457
4%
4%
1654
13%
7%
47
0%
1%
657
5%
9%
2655
22%
30%
87
1%
1%
420
3%
5%
63
Other services & not classified
1016
Total businesses
12525
Source: ABS, 2011, National Regional Profile
0%
1%
Property and business services
Education
Health and community services
Cultural and recreational services
8%
100%
7%
100%
Note: The figures in this table should be treated with caution. The ABS use modified data from the count of
Australian Business Numbers. This data has several sources of potential error, including the correlation
between an ABN and an actual business generating economic activity. In addition, the data is collected on an
enterprise and not a location basis and this may exclude branches of multi-locational businesses.
The table shows approximately 12,525 businesses in Greater Dandenong. Of these, the largest
number is in the property and business services sector as well as construction, transport and storage
and manufacturing. Between them, these four industries account for 61% of all registered
businesses in Greater Dandenong.
Compared with Metropolitan Melbourne as a whole, Greater Dandenong has a relatively high
proportion of manufacturing, wholesale, retail and transport businesses. It has relatively few
businesses in finance and insurance or property and business services.
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5.2 Business Size
The following table shows the employment size of the businesses in Greater Dandenong.
Table 11:
Estimate of size of businesses, Greater Dandenong and Metropolitan Melbourne,
2011
Business Size
Non-employing businesses
Employing businesses: 1 to 4 employees
Employing businesses: 5 or more employees
Total businesses
Source: ABS, 2011, Counts of Australian Businesses
Greater Dandenong (C)
no
%
7 199
58%
2 889
23%
2 437
12 525
19%
100%
Melbourne
Metro
%
60%
25%
15%
100%
Note: The figures in this table should be treated with caution. The ABS use modified data from the count of
Australian Business Numbers. This data has several sources of potential error, including the correlation
between an ABN and an actual business generating economic activity. In addition, the data is collected on an
enterprise and not a location basis and this may exclude branches of multi-locational businesses.
In Greater Dandenong, 58% of all businesses are sole proprietorships or partnerships that do not
have employees. Micro-businesses in Greater Dandenong, that is, businesses employing less than
five people constitute 81% of all businesses (and this compares with 85% of businesses in
Metropolitan Melbourne as a whole).
Greater Dandenong has a relatively high proportion of businesses employing five or more people –
19% of businesses in Greater Dandenong employ five or more compared with 15% in Metropolitan
Melbourne as a whole.
Data from the ABS for Metro Melbourne as a whole suggests that approximately 60% of all
businesses are home-based businesses. In Greater Dandenong, the relatively smaller proportion of
micro-businesses, suggests that home-based businesses are likely to form a smaller proportion of
the total.
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6 Greater Dandenong Output
The following table provides an estimate of economic output and value added of the various
industries in Greater Dandenong.
Table 12:
Estimate of output and value-added, Greater Dandenong, December 2012
Local
Expenditure
Regional
Imports
Industry Sector
Output
Manufacturing
$M
$15,505.34
$M
$4,432.75
$M
$8,041.95
$M
$3,030.63
Wholesale Trade
$2,659.80
$769.70
$598.17
$1,291.92
Construction
$1,593.68
$793.05
$316.61
$484.02
Rental, Hiring & Real Estate Services
$1,515.26
$296.74
$271.12
$947.39
Transport, Postal & Warehousing
$1,268.32
$454.55
$238.27
$575.51
Financial & Insurance Services
$930.32
$153.09
$174.16
$603.08
Health Care & Social Assistance
$747.68
$170.86
$74.51
$502.31
Retail Trade
$652.70
$151.34
$110.89
$390.47
Professional, Scientific & Technical Services
$601.92
$159.58
$183.67
$258.67
Public Administration & Safety
$585.00
$148.64
$111.05
$325.31
Education & Training
$493.53
$77.37
$61.45
$354.71
Other Services
$441.07
$164.34
$56.62
$220.11
Administrative & Support Services
$369.28
$106.51
$84.19
$178.59
Accommodation & Food Services
$232.67
$71.06
$61.50
$100.10
Information Media & Telecommunications
$231.28
$61.14
$58.28
$111.87
Electricity, Gas, Water & Waste Services
$224.66
$53.23
$41.75
$129.69
Arts & Recreation Services
$80.13
$28.37
$21.24
$30.51
Agriculture, Forestry & Fishing
$79.57
$27.63
$16.58
$35.36
Mining
$47.16
$7.50
$19.58
$20.07
$28,259.34
$8,127.45
$10,541.58
$9,590.30
Total
Value-Added
Source: Compelling Economics, 2012, REMPLAN
Note: All figures, data and commentary presented in this table are from the REMPLAN model which is based
on data sourced from the Australia Bureau of Statistics (ABS), including the Census of Population and Housing
and National Accounts
Greater Dandenong has an estimated economic output of over $28 billion (2012) and a value added
of over $9.5 billion. Manufacturing is by far the largest industry and accounts for over $15.5 billion
of output (55% of the total) and over $3 billion of value added (32% of the total). [Value-added is a
measure of how much value has been added to goods and services by businesses within Greater
Dandenong.]
Compelling Economics estimates that the Gross Regional Product per capita in the municipality was
$74,857 in 2012. This compares with $57,087 per person in Victoria as a whole for the same period.
[Gross Regional Product (GRP) is the total value of final goods and services produced in the region
over the period of one year. GRP is calculated by adding up all forms of final expenditure including:
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21
consumption by households; consumption by governments; additions or increases to assets (minus
disposals); and exports (minus imports). ]
These figures show that Greater Dandenong is an important source of economic value for the State.
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7 Greater Dandenong Property
7.1 Residential Property Prices
Residential property prices are a good indication of the demand by the general community to live in
an area and of the type of property that is available.
The following chart shows the trend in the median price of a house in Greater Dandenong over the
past decade.
Figure 8:
Median house prices, Greater Dandenong and Metropolitan Melbourne, 1985 to
2012
Source: Land Data Department of Sustainability and Environment, 2012
Note: current prices, not adjusted for inflation
Median house prices in Greater Dandenong have remained consistently lower than those in
Metropolitan Melbourne as a whole over the period from 1985 to 2012. From 1985 to 2001, median
house prices in Greater Dandenong did not increase as fast as those in Metropolitan Melbourne as a
whole. However, from 2001 to 2010 prices in the municipality have slightly outpaced those in
Metropolitan Melbourne as a whole. In part, this reflects the change in housing stock available for
sale within Greater Dandenong (including second and third home-buyer family homes in
Keysborough). In part, too, the change reflects an improvement in the accessibility of Greater
Dandenong as a result of Eastlink and other transport improvements. From 2011, however, the
median price decreased both in the municipality and Metropolitan Melbourne.
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7.2 Value of Building Work
The annual value of building permits in Greater Dandenong is illustrated in the following chart. The
chart differentiates between housing and non-housing building permits.
Figure 9:
Annual value of housing and non-housing construction in Greater Dandenong,
2001 to 2011
Source: Building Commission Victoria, 2011, Pulse
The chart shows that construction of workplaces is the largest component of the local building
sector. This demonstrates the importance of non-housing investment in the municipality.
If looked at on a per capita basis, total building value in 2011 was $3,672 per person in Greater
Dandenong. This compared with $4,723 per person in Metropolitan Melbourne as a whole. The
value of non-housing construction was $2,206 per capita in Greater Dandenong compared with
$1,609 in Metropolitan Melbourne as a whole.
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The aerial photographs of a section of the Greater Dandenong industrial growth area between
Hammond Rd and Ordish Rd from 2002 and 2012 illustrate an example of how the industrial area
grew over the ten year period. The industrial areas still continue to grow consistent with ongoing
investment in non-housing construction.
Figure 10:
Aerial photograph Ordish Rd and Hammond Rd 2002
Figure 11:
Aerial photograph Ordish Rd and Hammond Rd 2012
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8 Conclusion
The statistical data outlined here shows a number of key points about the economy of Greater
Dandenong:

The municipality is a major source of employment for the whole South East Region of
Metropolitan Melbourne and beyond. In 2011, Greater Dandenong had 76,578 jobs and only
54,070 workers; there was a net import of 22,508 workers.

It is estimated that in 2012, the value of economic output per resident was $74,857 in Greater
Dandenong, compared with $57,087 per resident in Victoria as a whole.

Manufacturing is especially strong and accounts for 30% of all the jobs in the municipality. The
manufacturing industry in Greater Dandenong has an annual output currently estimated at
$15.5 billion (55% of the total output).

The population of the municipality is forecast to grow at 1.1% per year until 2026, albeit with
fluctuations depending on the availability of housing land.

The resident labour-force of Greater Dandenong is relatively disadvantaged. On average,
residents of Greater Dandenong have lower levels of qualification than their counterparts in
Metropolitan Melbourne as a whole. This leads to lower proportions of professional and
managerial workers, lower household incomes and higher rates of unemployment compared to
Metropolitan Melbourne as a whole.

Greater Dandenong has a relatively high proportion of migrants (60% of people in Greater
Dandenong are born overseas compared with 33% in Metropolitan Melbourne as a whole).
Some of these migrants have difficulties speaking English and this further reinforces local labourmarket disadvantage.

The ABS estimates that in 2011 there were 12,525 businesses in Greater Dandenong. The
growth in the number of businesses in the municipality is higher than for Metropolitan
Melbourne as a whole, indicating that this is a place where entrepreneurs come to start
business.

Whilst housing is relatively inexpensive in Greater Dandenong, the median price of housing has
been accelerating more rapidly than that in Metropolitan Melbourne as a whole. This is likely to
be as a result of both an improvement in the quality of housing stock for sale and real
appreciation in the value of existing housing as the municipality becomes more and more
accessible. In the recent period house prices have started to decline.
These statistics indicate a municipality with a strong base in manufacturing, hosting jobs for the
regional labour-force. The local resident labour-force however is characterised with high
unemployment and low skills. These factors provide scope for action on local economic
development.
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9 References
ABS (Australian Bureau of Statistics), Regional Population Growth Australia, 2011 & 2012, Canberra
ABS, National Regional Profiles, 2011, Canberra
ABS, Census of Population and Housing, 2011, Canberra
ABS, Gross State Product, Chain volume measures and current prices, 2012, Canberra
Building Commission Victoria, 2012, Pulse, Melbourne
Compelling Economics, 2012, REMPLAN, for Greater Dandenong
Department of Employment and Workplace Relations, 2012, Small Area Labour Markets, Canberra
DPCD, 2012, Victoria in Future 2012, Melbourne
Land Data Department of Sustainability and Environment, Median House Prices, 2012, Melbourne
City of Greater Dandenong, 2012, Population Forecasts, Greater Dandenong
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