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, the estimated population for the Clayton South statistical area (Lv2) is around 15,178. This reflects a growth of 1,797 people since the 2021 Census, which reported a population of 13,381. The change was inferred from AreaSearch's resident population estimate of 15,138 in June 2024, based on the latest ERP data release by the ABS and an additional 284 validated new addresses since the Census date. This results in a population density ratio of 1,911 persons per square kilometer, above the national average assessed by AreaSearch. Clayton South's growth rate of 13.4% since the 2021 census exceeded 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 from 2023, adjusted using 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, the Clayton South (SA2) is forecasted to experience significant population increase, with an expected expansion of 5,731 persons by 2041 based on aggregated SA2-level projections, reflecting a 37.5% increase over the 17-year period.

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

Based on AreaSearch analysis of ABS building approval numbers, allocated from statistical area data, Clayton South has experienced around 85 dwellings receiving development approval per year. Over the past five financial years, between FY21 and FY25, an estimated 426 homes were approved, with a further 14 approved so far in FY26. This reflects robust demand that underpins property values, with new homes being constructed at an average value of $475,000, somewhat higher than regional norms, reflecting quality-focused development.

In the current financial year, $29.8 million in commercial approvals have been registered, suggesting robust local business investment. Relative to Greater Melbourne, Clayton South shows 61.0% higher building activity per person, creating greater choice for buyers, though development activity has moderated in recent periods. New development consists of 14.0% detached dwellings and 86.0% medium and high-density housing, indicating a trend toward denser development that provides accessible entry options and appeals to downsizers, investors, and entry-level buyers. This represents a notable shift from the area's existing housing composition, currently at 56.0% houses, indicating decreasing availability of developable sites and reflecting changing lifestyles and the need for more diverse, affordable housing options. With around 474 people per dwelling approval, Clayton South shows a developed market. Future projections show Clayton South adding 5,691 residents by 2041, according to the latest AreaSearch quarterly estimate.

Should current construction levels persist, housing supply could lag population growth, likely intensifying buyer competition and underpinning price growth.

Clayton South has very high levels of nearby infrastructure activity, ranking in the top 20% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 26 projects that could affect the area. Notable ones include Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, 1899-1901 Dandenong Road Mixed-Use Development, and Skylight Sandringham. The following list details those most likely to be relevant.

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

Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Please follow links and conduct other investigations from the project's source for actual imagery. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

AreaSearch assessment positions Clayton South ahead of most Australian regions for employment performance

Clayton South has a highly educated workforce with strong representation in professional services. Its unemployment rate was 3.1% as of an unspecified date.

Employment growth over the past year was estimated at 4.3%. As of September 2025, 8,560 residents were employed, with an unemployment rate of 1.5% below Greater Melbourne's rate of 4.7%. Workforce participation was 60.9%, compared to Greater Melbourne's 64.1%. Employment is concentrated in health care & social assistance, manufacturing, and retail trade.

Manufacturing has a particularly strong specialization, with an employment share 1.5 times the regional level. Conversely, construction shows lower representation at 7.1% versus the regional average of 9.7%. Many residents commute elsewhere for work based on Census data. Between September 2024 and September 2025, employment increased by 4.3%, labour force grew by 4.9%, causing unemployment to rise by 0.5 percentage points. In Greater Melbourne, employment rose by 3.0%, the labour force grew by 3.3%, and unemployment rose by 0.3 percentage points. State-level data from 25-Nov-25 shows VIC employment grew by 1.13% year-on-year, with an unemployment rate of 4.7%. National employment forecasts from May-25 suggest growth of 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, though this is a simplified extrapolation for illustrative purposes.

Income levels sit below national averages according to AreaSearch assessment

AreaSearch's data for financial year 2023 shows Clayton South's median income is $48,722 and average income is $56,716. Nationally, median income was $57,688 and average income was $75,164. By September 2025, estimated incomes would be around $52,742 (median) and $61,395 (average), based on an 8.25% Wage Price Index growth since financial year 2023. Census 2021 data shows Clayton South's household income ranks at the 43rd percentile ($1,630 weekly) and personal income at the 25th percentile. The largest income segment comprises 34.5% earning $1,500 - $2,999 weekly (5,236 residents), similar to broader regional trends of 32.8%. Housing affordability pressures are severe, with only 82.8% of income remaining after housing costs, ranking at the 42nd percentile. Clayton South's SEIFA income ranking places it in the 4th decile.

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

Clayton South's latest Census data shows 56.0% houses and 43.9% other dwellings, compared to Melbourne metro's 72.1% houses and 28.0% other dwellings. Home ownership in Clayton South is 32.1%, similar to Melbourne metro, with mortgaged dwellings at 27.4% and rented ones at 40.6%. The median monthly mortgage repayment is $1,997, higher than Melbourne metro's $1,800 and the Australian average of $1,863. Median weekly rent in Clayton South is $381, higher than Melbourne metro's $350 and 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

Educational attainment in Clayton South is notably high, with 39.1% of residents aged 15 and above holding university qualifications, surpassing the SA3 area's 26.7% and the SA4 region's 29.8%. Bachelor degrees are the most common at 23.7%, followed by postgraduate qualifications at 13.5% and graduate diplomas at 1.9%. Vocational pathways account for 21.9%, with advanced diplomas at 10.1% and certificates at 11.8%. Educational participation is high, with 30.5% of residents currently enrolled in formal education.

This includes 9.7% in tertiary education, 6.8% in primary education, and 5.4% pursuing secondary education.

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

Clayton South has 72 operational public transport stops. These are a combination of train and bus stations. Sixteen different routes serve these stops, totalling 3,682 weekly passenger trips.

Residents have excellent access to transport, with an average distance of 180 metres to the nearest stop. On average, there are 526 trips per day across all routes, which translates to about 51 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

Clayton South shows excellent health outcomes across all age groups. Common health conditions have a low prevalence here; both younger and older residents experience this.

Approximately 49% of Clayton South's total population (~7,485 people) has private health cover, which is lower than the national average of 55.7%. The most prevalent medical conditions in the area are arthritis (affecting 5.7% of residents) and asthma (impacting 5.3%). A significant majority, 77.4%, report being completely free from medical ailments, compared to 75.1% across Greater Melbourne. Clayton South has a lower proportion of seniors aged 65 and over at 14.2% (2,155 people), compared to Greater Melbourne's 17.4%. Despite this, health outcomes among seniors in Clayton South are notably strong, closely mirroring the general population's health 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, one of the most culturally diverse areas in Australia, has 70.4% of its population speaking a language other than English at home and 65.5% born overseas. Christianity is the predominant religion in Clayton South, accounting for 39.3% of the population. However, Buddhism is notably overrepresented, comprising 10.6% compared to Melbourne's average of 15.2%.

In terms of ancestry, the top groups are Other (22.7%), Chinese (17.8%), and Indian (10.8%). Clayton South has notable divergences in certain ethnic groups: Greek is overrepresented at 9.2%, Sri Lankan is slightly underrepresented at 1.5%, and Vietnamese is underrepresented 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. 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 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 26%, adding 949 residents to reach a total of 4,668.