Clayton South

Population growth drivers in Clayton South are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

As of Nov 2025, Clayton South's population is estimated at around 15,356 people. This reflects an increase of 1,975 people since the 2021 Census, which reported a population of 13,381 people. The change is inferred from AreaSearch's estimation of the resident population at 15,138 following examination of the latest ERP data release by the ABS in June 2024, along with an additional 284 validated new addresses since the Census date. This level of population equates to a density ratio of 1,934 persons per square kilometer, above the average seen across national locations assessed by AreaSearch. Clayton South's growth rate of 14.8% since the 2021 census exceeded both the SA3 area's 6.8% and the national average, marking it as a growth leader in the region. Overseas migration contributed approximately 88.0% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, released in 2024 with 2022 as the base year. For areas not covered by this data, AreaSearch utilises VIC State Government's Regional/LGA projections released in 2023, adjusting them employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Looking ahead, significant population increase is forecast for the top quartile of national statistical areas. Clayton South is expected to expand by 5,731 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 35.9% in total over the 17 years.

Recent residential development output has been above average within Clayton South when compared nationally

Based on AreaSearch analysis of ABS building approval numbers from statistical area data, Clayton South has experienced around 85 dwellings receiving development approval per year. Over the past 5 financial years, between FY-21 and FY-25, approximately 426 homes were approved, with a further 8 approved so far in FY-26. On average, about 2.5 people move to the area annually for each new home constructed during these years, indicating robust demand that supports property values.

New homes are being built at an average expected construction cost value of $475,000. This financial year has seen $29.8 million in commercial approvals, reflecting high levels of local commercial activity. Compared to Greater Melbourne, Clayton South shows 61.0% higher new home approvals per person, offering greater choice for buyers, although construction activity has recently eased. The majority of new building activity consists of townhouses or apartments (86.0%), with a smaller proportion being standalone homes (14.0%). This trend towards compact living provides affordable entry pathways and attracts downsizers, investors, and first-time purchasers, marking a significant shift from the current housing mix, which is predominantly houses (56.0%). Clayton South has approximately 474 people per dwelling approval, reflecting an established area.

According to AreaSearch's latest quarterly estimate, the location is expected to grow by 5,513 residents through to 2041. If current construction levels persist, housing supply may lag population growth, potentially intensifying buyer competition and underpinning price growth.

Clayton South has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Twenty-eight projects have been identified by AreaSearch as potentially impacting the area. Notable projects include Bluff Road Hampton East Housing Development, Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, and 1899-1901 Dandenong Road Mixed-Use Development. The following list details those likely to be most relevant.

Professional plan users can use the search below to filter and access additional projects.

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Employment performance in Clayton South exceeds national averages across key labour market indicators

Clayton South has a highly educated workforce with strong professional services representation. Its unemployment rate was 3.2% in the past year, with an estimated employment growth of 3.7%.

As of June 2025, 8,496 residents are employed, with an unemployment rate of 1.4% below Greater Melbourne's rate of 4.6%. Workforce participation is lower at 60.9%, compared to Greater Melbourne's 64.1%. Major employment sectors include health care & social assistance, manufacturing, and retail trade. Manufacturing shows particularly strong specialization with an employment share of 1.5 times the regional level, while construction has lower representation at 7.1% versus the regional average of 9.7%.

Many residents commute elsewhere for work based on Census working population data. In the 12 months prior to June 2025, employment increased by 3.7%, with a labour force increase of 4.4%, raising the unemployment rate by 0.7 percentage points. This contrasts with Greater Melbourne's employment rise of 3.5% and unemployment increase of 0.5 percentage points. Jobs and Skills Australia's national employment forecasts from Sep-22 project national employment growth at 6.6% over five years and 13.7% over ten years. Applying these projections to Clayton South's employment mix suggests local employment should increase by 6.3% over five years and 13.4% over ten years, based on a simple weighting extrapolation for illustrative purposes.

Income levels sit below national averages according to AreaSearch assessment

AreaSearch's latest postcode level ATO data for financial year 2022 shows that Clayton South has a median income of $48,722 and an average income of $56,716. This is lower than the national average. In Greater Melbourne, the median income is $54,892 and the average is $73,761. Based on Wage Price Index growth of 12.16% since financial year 2022, current estimates for Clayton South would be approximately $54,647 (median) and $63,613 (average) as of September 2025. According to Census 2021 income data, household income ranks at the 43rd percentile with a weekly income of $1,630. Personal income is at the 25th percentile. The largest segment of residents earns between $1,500 and $2,999 weekly, comprising 34.5% (5,297 residents), which aligns with broader regional trends showing 32.8% in the same category. Housing affordability pressures are severe, with only 82.8% of income remaining after housing costs, ranking at the 42nd percentile. The area's SEIFA income ranking places it in the 5th decile.

Clayton South displays a diverse mix of dwelling types, with a higher proportion of rental properties than the broader region

In Clayton South, as assessed in the latest Census, houses made up 56.0% of dwellings while other types such as semi-detached homes, apartments, and 'other' dwellings constituted 43.9%. In contrast, Melbourne metropolitan area had 72.1% houses and 28.0% other dwellings. Home ownership in Clayton South was similar to Melbourne metro at 32.1%, with mortgaged dwellings at 27.4% and rented ones at 40.6%. The median monthly mortgage repayment in the area was $1,997, higher than Melbourne metro's average of $1,800. The median weekly rent figure was recorded at $381 compared to Melbourne metro's $350. Nationally, Clayton South's mortgage repayments exceeded the Australian average of $1,863 while rents were higher than the national figure of $375.

Clayton South features high concentrations of group households, with a lower-than-average median household size

Family households account for 69.8% of all households, including 31.8% couples with children, 24.3% couples without children, and 11.4% single parent families. Non-family households constitute the remaining 30.2%, with lone person households at 21.9% and group households comprising 8.4%. The median household size is 2.7 people, which is smaller than the Greater Melbourne average of 2.8.

Educational attainment in Clayton South aligns closely with national averages, showing typical qualification patterns and performance metrics

Clayton South has a notably high educational attainment among its residents aged 15 years and above. As of the latest data, 39.1% of these residents hold university qualifications, which is significantly higher than the broader SA3 area's 26.7% and the SA4 region's 29.8%. This indicates a substantial educational advantage for Clayton South, positioning it favourably for knowledge-based opportunities. The most prevalent qualification in Clayton South is bachelor degrees, held by 23.7% of residents aged 15 years and above.

Postgraduate qualifications follow at 13.5%, with graduate diplomas comprising 1.9%. Vocational pathways account for a significant portion as well, with 21.9% of those aged 15 years and above having such qualifications. Advanced diplomas make up 10.1% of this group, while certificates constitute 11.8%. Educational participation in Clayton South is notably high, with 30.5% of residents currently enrolled in formal education. This includes 9.7% pursuing tertiary education, 6.8% in primary education, and 5.4% engaged in secondary education. Clayton South's five schools have a combined enrollment reaching 1,149 students. The area demonstrates typical Australian school conditions, with an ICSEA score of 1019, indicating balanced educational opportunities. Education provision is balanced with three primary schools and two secondary schools serving distinct age groups. However, there is limited local school capacity, with only 7.5 places available per 100 residents compared to the regional average of 15.4. This means many families travel to nearby areas for schooling. Note: Where schools show 'n/a' for enrolments, please refer to the parent campus.

Transport servicing is good compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Clayton South has 72 active public transport stops offering a mix of train and bus services. These stops are served by 15 different routes, carrying out 4,579 weekly passenger trips in total. The average distance to the nearest transport stop for residents is 180 meters, indicating excellent accessibility.

On average, there are 654 trips per day across all routes, which translates to about 63 weekly trips per individual stop.

Clayton South's residents boast exceedingly positive health performance metrics with both young and old age cohorts seeing low prevalence of common health conditions

Health outcomes data shows notable results across Clayton South, with both young and elderly populations experiencing low prevalence of common health conditions. Approximately 49% (~7,573 people) have private health cover, lower than the national average of 55.3%.

The most prevalent medical conditions are arthritis (5.7%) and asthma (5.3%), while 77.4% report no medical ailments, higher than Greater Melbourne's 75.1%. Clayton South has a lower proportion of residents aged 65 and over at 14.2% (2,180 people), compared to Greater Melbourne's 17.4%. Senior health outcomes align with the general population's profile.

Clayton South is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Clayton South has a population where 70.4% speak a language other than English at home, with 65.5% born overseas. Christianity is the predominant religion in Clayton South, accounting for 39.3%. Buddhism is notably higher here compared to Greater Melbourne, with 10.6% versus 15.2%.

The top three ancestry groups are Other (22.7%), Chinese (17.8%), and Indian (10.8%). Greeks are overrepresented at 9.2%, Sri Lankans at 1.5%, and Vietnamese at 4.3%.

Clayton South hosts a young demographic, positioning it in the bottom quartile nationwide

Clayton South's median age is 34 years, which is lower than Greater Melbourne's average of 37 and Australia's average of 38 years. Compared to Greater Melbourne, Clayton South has a higher percentage of residents aged 25-34 (24.5%) but fewer residents aged 5-14 (8.4%). This concentration of 25-34 year-olds is significantly higher than the national average of 14.5%. Between the 2021 Census and the present, the percentage of Clayton South's population aged 25 to 34 has increased from 23.1% to 24.5%, while the percentage of residents aged 45 to 54 has decreased from 10.8% to 10.1%. By 2041, population forecasts indicate that Clayton South's 25-34 age group is projected to grow by 24%, adding 905 residents to reach a total of 4,668 in this age bracket.