The project is one of the first to be tackled since three new urban designers and a heritage policy planner were hired this year to bolster the city's design expertise.
The South Dunedin study is being undertaken by urban designer Mike Daffern, and follows years of discussion about the area, and what can be done to improve it.
A residents' opinion survey last year showed 40% of respondents were dissatisfied with the suburb's look.
[comment caption=What should be done to revamp South Dunedin?]Cr John Bezett, a South Dunedin ward councillor, said the study was also a response to concerns raised at annual plan submissions over the years.
Cr Bezett said he and South Dunedin councillors Bill Acklin, Dave Cull and Neil Collins had been briefed on the study.
"It's an old part of the city and it's an important part of the city. It needs to be looked at," he said.
Council strategy and development general manager Kate Styles said the idea of the study was to gather information to discover how improvements could be made to the urban environment of South Dunedin.
Working with organisations in the area was important, and Mr Daffern had worked hard on that aspect of the study.
It was possible there would be synergies with other council projects in the area, the proposed South Dunedin library being an example.
The study would look at everything from where trees and green space were situated, to seating and even bus stops.
The end result would be to improve "the look and feel" of South Dunedin, and the experience of people using the area.
She was keen, though, to get across that the city had limited funding at its disposal for urban design, and the study would not solve every problem.
"We're not talking millions."
But Cr Cull said there could be ways around that issue.
He believed the area lacked a "hub".
"The central city has the Octagon. The best South Dunedin has is the Pak'n Save car park."
The council did have assets in the area, including the former Caledonian ground building, and it may be those could be sold or swapped to provide a cost-neutral solution.
Mrs Styles said she hoped the report would go to the council's planning and environment committee before Christmas.
• Vanita Prasad asked people on the streets of South Dunedin what they would like to see changed to make the area more appealing.
South Dunedin, unemployed
They need to put in more shops and more banks and more clothing shops; stores that sell baby clothes. They also need to put in food banks
> Ray Moore (47)
South Dunedin, musician
It's pretty hard to say. There's no easy solution or quick fix. There needs be more opportunities for young people, especially for employment. They need a starting point...
> Jodie Jackson (16)
South Dunedin, unemployed
A mall would be good, with clothing stores like Supre
> Bryan Lynn (82)
South Dunedin, retired
After Pak'n Save and the Warehouse being built I thought that was the end of South Dunedin, but we fought back. It's not dead yet, but some more shops and places for the elderly would be good
> Billy-Jo (40)
South Dunedin, mother
I would like to see more resources for the youth of South Dunedin. Somewhere for the kids to be able to go and relax and hang out with other kids that was free . . . so they can stay off the streets
> Stephen Jones (53)
South Dunedin, unemployed
It would be nice if they had an indoor bowling alley as well as somewhere for the children. More shops and better parking would also revamp the place