Dandenong

Population growth drivers in Dandenong are slightly above average based on AreaSearch's ranking of recent, and medium term trends

Dandenong's population is estimated at around 32,363 as of May 2026. This reflects a growth of 2,236 people since the 2021 Census, which reported a population of 30,127. The change is inferred from AreaSearch's estimation of the resident population at 32,276 following examination of the latest ERP data release by the ABS in June 2025 and an additional 285 validated new addresses since the Census date. This level of population equates to a density ratio of 2,846 persons per square kilometer, placing Dandenong in the upper quartile relative to national locations assessed by AreaSearch. Dandenong's growth of 7.4% since the 2021 census exceeded the SA3 area's growth of 7.0%. Population growth for the suburb was primarily driven by overseas migration, contributing approximately 85.0% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data, AreaSearch utilises the VIC State Government's Regional/LGA projections released in 2023, adjusted 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. Considering projected demographic shifts, an above median population growth is projected for the suburb, with an expected increase of 6,434 persons to 2041 based on aggregated SA2-level projections, reflecting a total increase of 19.6% over the 16 years.

Residential development activity is lower than average in Dandenong according to AreaSearch's national comparison of local real estate markets

Based on AreaSearch analysis of ABS building approval numbers, allocated from statistical area data, Dandenong has experienced around 114 dwellings receiving development approval each year. Over the past five financial years, between FY-21 and FY-25, approximately 574 homes were approved, with a further 179 approved so far in FY-26. Despite population decline during this period, housing supply has remained adequate relative to demand, resulting in a well-balanced market offering good buyer choice.

The average expected construction cost value of new dwellings is $374,000. In the current financial year, $48.1 million worth of commercial approvals have been registered, indicating strong commercial development momentum. When compared to Greater Melbourne, Dandenong maintains similar development levels per person, consistent with the broader area's market balance. New developments consist of 19.0% detached houses and 81.0% attached dwellings, representing a shift from existing housing patterns (currently 42.0% houses), likely due to diminishing developable land availability and evolving lifestyle preferences. Dandenong indicates a mature market with around 407 people per approval.

According to the latest AreaSearch quarterly estimate, Dandenong is expected to grow by 6,347 residents through to 2041, with development keeping reasonable pace with projected growth, though buyers may face increasing competition as population expands.

Dandenong has strong levels of nearby infrastructure activity, ranking in the top 30% nationally

Changes in local infrastructure significantly impact an area's performance. AreaSearch has identified 20 projects that could affect this region. Notable projects include the Dandenong Wellbeing Centre, Webster Street Level Crossing Removal, Dandenong New Art (DNA), and The Lonsdale. Below is a list of 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.

Employment conditions in Dandenong face significant challenges, ranking among the bottom 10% of areas assessed nationally

Dandenong has a skilled workforce with the construction sector being notably represented. Its unemployment rate was 16.3% in the past year, with an estimated employment growth of 1.1%. As of December 2025, 12,894 residents are employed while the unemployment rate is 11.5% higher than Greater Melbourne's rate of 4.8%.

Workforce participation lags at 59.4%, compared to Greater Melbourne's 69.9%. Only 11.8% of residents work from home, though Covid-19 lockdown impacts are considered. Dominant employment sectors include manufacturing, health care & social assistance, and construction. Manufacturing is particularly strong with an employment share of 2.2 times the regional level.

Professional & technical services are under-represented at 4.7% compared to Greater Melbourne's 10.1%. The ratio of 0.8 workers per resident indicates substantial local employment opportunities. Between December 2024 and December 2025, employment levels increased by 1.1%, labour force grew by 4.1%, leading to a rise in unemployment rate by 2.5 percentage points. In contrast, Greater Melbourne experienced employment growth of 2.4% with a 0.3 percentage point rise in unemployment rate. Jobs and Skills Australia's national employment forecasts from May-25 suggest local employment should increase by 5.8% over five years and 12.6% over ten years, based on industry-specific projections applied to Dandenong's employment mix.

The area's income levels rank in the lower 15% nationally based on AreaSearch comparative data

The suburb of Dandenong had a median taxpayer income of $45,402 and an average income of $52,232 in the financial year 2023, according to postcode level ATO data aggregated by AreaSearch. This is lower than the national average, contrasting with Greater Melbourne's median income of $57,688 and average income of $75,164 during the same period. By March 2026, based on a Wage Price Index growth of 9.62%, estimated incomes would be approximately $49,770 (median) and $57,257 (average). The 2021 Census showed that household, family, and personal incomes in Dandenong all fell between the 11th and 18th percentiles nationally. The earnings profile indicated that 29.7% of locals (9,611 people) earned between $1,500 and $2,999, which is similar to the metropolitan region where 32.8% fell into this income range. Housing affordability pressures were severe in Dandenong, with only 79.4% of income remaining after housing costs, ranking at the 14th percentile nationally.

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

Dwelling structure in Dandenong, as evaluated at the latest Census held on 28 August 2016, comprised 41.5% houses and 58.5% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Dandenong stood at 20.5%, with mortgaged dwellings at 24.5% and rented ones at 54.9%. The median monthly mortgage repayment was $1,517, lower than Melbourne metro's average of $2,000. Median weekly rent in Dandenong was $319, compared to Melbourne metro's $390. Nationally, Dandenong's mortgage repayments were significantly lower than the Australian average of $1,863, and rents were substantially below the national figure of $375.

Dandenong features high concentrations of group households, with a higher-than-average median household size

Family households account for 65.2% of all households, including 31.5% couples with children, 18.5% couples without children, and 13.3% single parent families. Non-family households constitute the remaining 34.8%, with lone person households at 27.3% and group households comprising 7.4%. The median household size is 2.8 people, which is larger than the Greater Melbourne average of 2.6.

Educational outcomes in Dandenong fall within the lower quartile nationally, indicating opportunities for improvement in qualification attainment

The area's university qualification rate is 24.6%, significantly lower than Greater Melbourne's average of 37.0%. This disparity presents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees are the most common at 16.0%, followed by postgraduate qualifications (7.1%) and graduate diplomas (1.5%). Trade and technical skills are prominent, with 27.9% of residents aged 15+ holding vocational credentials – advanced diplomas (11.1%) and certificates (16.8%).

Educational participation is high, with 34.5% of residents currently enrolled in formal education. This includes primary education (10.1%), secondary education (7.8%), and tertiary education (6.0%).

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

Dandenong has 164 active public transport stops operating within it. These are a mix of train and bus services, totaling 51 individual routes that provide 10,336 weekly passenger trips combined. The average distance residents live from the nearest transport stop is 161 meters, indicating excellent accessibility. In this primarily residential area, most commuting is outward-bound. Cars are the dominant mode of transport at 82%, with trains at 8% and buses at 6%. On average, there are 1.1 vehicles per dwelling, which is below the regional average.

According to the 2021 Census, only 11.8% of residents work from home, potentially due to COVID-19 conditions. Service frequency averages 1,476 trips per day across all routes, equating to approximately 63 weekly trips per individual stop. The accompanying map displays the 100 nearest stops to the location's centrepoint.

Health outcomes in Dandenong are marginally below the national average with the level of common health conditions among the general population somewhat typical, though higher than the nation's average among older cohorts

Dandenong's health indicators show below-average outcomes based on AreaSearch's assessment of mortality rates and chronic condition prevalence. The level of common health conditions among the general population is somewhat typical but higher than the national average among older cohorts. Private health cover is very low, at approximately 48% of the total population (~15,395 people), compared to Greater Melbourne's 56.7% and the national average of 55.7%.

The most common medical conditions are mental health issues (6.9%) and diabetes (5.5%), with 77.1% declaring themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. Working-age residents have low chronic condition prevalence. The area has 13.4% of residents aged 65 and over (4,336 people), lower than Greater Melbourne's 15.0%. Health outcomes among seniors present some challenges but rank lower nationally than the broader population.

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

Dandenong, one of the most culturally diverse areas in Australia, has a population where 73.8% speak languages other than English at home and 66.2% were born overseas. The predominant religion is Islam, accounting for 37.9%, significantly higher than Greater Melbourne's 5.6%. In terms of ancestry, the top groups are Other (47.5%), English (9.2%), and Australian (8.6%).

Notably, Serbian (1.9%) Sri Lankan (2.1%) and Russian (0.6%) ethnicities are overrepresented compared to regional averages.

Dandenong's young demographic places it in the bottom 15% of areas nationwide

Dandenong's median age is 33, which is younger than Greater Melbourne's figure of 37 and Australia's national average of 38 years. Compared to Greater Melbourne, Dandenong has a higher percentage of residents aged 25-34 (19.2%) but fewer residents aged 55-64 (8.6%). Between the 2021 Census and the present day, the age group 5-14 has grown from 11.9% to 12.5% of Dandenong's population. Conversely, the age group 25-34 has declined from 20.7% to 19.2%. By the year 2041, population forecasts indicate significant demographic changes for Dandenong. The age group 45-54 is projected to grow by 35%, adding 1,232 residents to reach a total of 4,728. Meanwhile, the age group 0-4 is expected to grow by a modest 5% (an increase of 112 people).