Positive Property director Justin Stott is redeveloping three buildings in King Edward St to try to revitalise the "rundown" shopping centre.
For many years the suburb and shopping centre had been "underinvested in", but there were multiple large-scale projects starting in the area that could "bring it back to life".
Hillside workshops was undergoing a $90 million redevelopment and the Dunedin City Council was also building a new library and community hub in the suburb.
Mr Stott bought the properties in June last year and two of them, which included the former Wolfenden and Russell, were demolished just before Christmas.
The clothing shop traded there for more than 100 years but shut in 2013.
Nearly two years ago, the building was damaged extensively by fire.
The plan was for the site to include a mix of retail sites, office space and car parks, the construction to start this year.
It was hoped tenants would be starting to move in by the middle of next year .
Mr Stott had already received inquiries from a "wide variety" of businesses, including local and national, about moving to South Dunedin once his buildings had been completed.
Work on the refurbishment of the third building, which was next door to the other two, into a heritage property was under way.
"The whole project is a very exciting prospect," he said.
DCC’s business relationship manager Des Adamson said South Dunedin had been "quite dormant" for many years, most likely due to a lack of confidence in the suburb.
A lot of projects had been been centre-city focused for a long time, leaving South Dunedin forgotten for a while.
The council would encourage and support investors to look at South Dunedin as an option.
Multiple residential housing projects happening in South Dunedin would also benefit the shopping area.
As more housing developments were completed, the area would become more attractive, Mr Adamson said.
It was also a very central location, being close to some of the big retail outlets, supermarkets and the beach.
"It has a great mix of work and pleasure, and I think people are starting to see that.
"It is definitely an exciting time," Mr Adamson said.
