South Melbourne

South Melbourne lies within the top quartile of areas nationally for population growth performance according to AreaSearch analysis of recent, and medium to long-term trends

By 2025 Nov, South Melbourne's population is estimated at around 14,383. This reflects an increase of 2,835 people since the 2021 Census, which reported a population of 11,548. The change is inferred from AreaSearch's estimation of resident population at 13,825 in June 2024, following examination of ABS's latest ERP data release, and an additional 1,749 validated new addresses since the Census date. This level of population equates to a density ratio of 6,567 persons per square kilometer, placing South Melbourne in the top 10% of national locations assessed by AreaSearch. South Melbourne's 24.5% growth since the 2021 census exceeded both the national average (9.7%) and state average. Population growth was primarily driven by overseas migration contributing approximately 99.0% 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 VIC State Government's Regional/LGA projections released in 2023, adjusted employing weighted aggregation methods from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Exceptional growth is predicted over the period with an expected increase of 6,566 persons to 2041 based on aggregated SA2-level projections, reflecting a total increase of 35.2% over the 17 years.

AreaSearch assessment of residential development activity positions South Melbourne among the top 25% of areas assessed nationwide

South Melbourne has seen approximately 492 dwelling approvals per year over the past five financial years, totalling around 2,463 homes. In FY-26 so far, there have been 534 approvals. Over these five years, an average of 0.2 people moved to South Melbourne for each dwelling built. This indicates that supply is meeting or exceeding demand, providing more buyer choices and supporting potential population growth beyond projections.

The average construction value for new properties is $698,000, suggesting a focus on the premium segment. In FY-26 alone, commercial development approvals have reached $171.3 million, demonstrating high levels of local commercial activity. Compared to Greater Melbourne, South Melbourne has 256.0% more construction activity per person. This activity has been moderating in recent periods but remains well above the national average, reflecting strong developer confidence in the area. New development in South Melbourne consists predominantly of medium and high-density housing (99.0%), with only a small proportion being detached houses (1.0%). This focus on higher-density living creates more affordable entry points for downsizers, investors, and first-home buyers.

The location currently has approximately 35 people per dwelling approval, indicating an expanding market. According to AreaSearch's latest quarterly estimate, South Melbourne is projected to gain around 5,060 residents by 2041. With current construction levels, housing supply should adequately meet demand, creating favourable conditions for buyers and potentially enabling population growth that exceeds current forecasts.

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

Infrastructure changes significantly influence an area's performance. AreaSearch has identified 65 projects likely impacting the area. Notable ones include South Melbourne Town Hall Restoration, Emerald Hill Housing and Health Precinct, Verde Arts Precinct, and 122 Moray. The following list details those most 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.

The employment landscape in South Melbourne shows performance that lags behind national averages across key labour market indicators

South Melbourne has a highly educated workforce. The technology sector is well-represented.

Its unemployment rate was 6.4% in the past year, with an estimated employment growth of 4.7%. As of September 2025, 8,362 residents are employed, with an unemployment rate of 1.8% above Greater Melbourne's rate of 4.7%. Workforce participation is at 68.4%, compared to Greater Melbourne's 64.1%. Employment is concentrated in professional & technical, health care & social assistance, and finance & insurance sectors.

The area specializes in professional & technical jobs, with an employment share twice the regional level. However, health care & social assistance shows lower representation at 10.2% compared to the regional average of 14.2%. There are 2.0 workers for every resident, indicating it functions as an employment hub attracting workers from surrounding areas. In the 12-month period ending in September 2025, employment increased by 4.7%, labour force grew by 5.4%, resulting in a 0.6 percentage point rise in unemployment. This contrasts with Greater Melbourne's employment growth of 3.0% and labour force growth of 3.3%. State-level data to 25-Nov-25 shows Victoria's employment grew by 1.13% year-on-year, adding 41,950 jobs, with the state unemployment rate at 4.7%, compared to the national rate of 4.3%. National employment forecasts from May-25 suggest employment should increase by 6.6% over five years and 14.7% over ten years. However, growth rates differ significantly between industry sectors. Applying these projections to South Melbourne's employment mix suggests local employment should increase by 7.2% over five years and 14.4% over ten years.

Income metrics indicate excellent economic conditions, with the area achieving higher performance than 75% of national locations assessed by AreaSearch

South Melbourne suburb has high national income levels according to latest ATO data aggregated by AreaSearch for financial year ended June 2023. Median income among taxpayers is $68,864 and average income is $105,821, compared to Greater Melbourne's median of $57,688 and average of $75,164. Based on Wage Price Index growth of 8.25%, estimates for September 2025 are approximately $74,545 (median) and $114,551 (average). Census data shows individual earnings at the 94th percentile nationally ($1,307 weekly). Income distribution reveals 29.9% of population falls within $1,500-$2,999 range, consistent with broader trends. High earners comprise 34.1%, indicating strong economic capacity. Housing costs consume 17.1% of income, but disposable income ranks at the 70th percentile, and SEIFA income ranking places South Melbourne in the 9th decile.

South Melbourne features a more urban dwelling mix with significant apartment living, with a higher proportion of rental properties than the broader region

South Melbourne's dwelling structure, as per the latest Census, had 4.7% houses and 95.3% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's 8.7% houses and 91.3% other dwellings. Home ownership in South Melbourne was 19.6%, with mortgaged dwellings at 24.0% and rented ones at 56.4%. The median monthly mortgage repayment was $2,200, higher than Melbourne metro's $2,170. Median weekly rent was $421, similar to Melbourne metro's $420. Nationally, South Melbourne's mortgage repayments were significantly higher at $1,863 and rents substantially above the national figure of $375.

South Melbourne features high concentrations of lone person households and group households, with a fairly typical median household size

Family households comprise 51.1% of all households, including 15.2% couples with children, 27.8% couples without children, and 6.9% single parent families. Non-family households account for the remaining 48.9%, with lone person households at 43.1% and group households making up 5.8%. The median household size is 1.9 people, which matches the Greater Melbourne average.

The educational profile of South Melbourne exceeds national averages, with above-average qualification levels and academic performance metrics

South Melbourne's educational attainment is notably higher than national and state averages. Among residents aged 15 and above, 56.9% hold university qualifications, compared to 30.4% nationally and 33.4% in Victoria. Bachelor degrees are the most common at 35.8%, followed by postgraduate qualifications (16.5%) and graduate diplomas (4.6%). Vocational pathways account for 20.0% of qualifications, with advanced diplomas at 10.6% and certificates at 9.4%.

Educational participation is high, with 26.7% of residents currently enrolled in formal education. This includes 8.9% in tertiary education, 6.3% in primary education, and 5.0% pursuing secondary education.

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

Public transport analysis shows 45 active transport stops operating within South Melbourne. These comprise a mix of light rail and bus services. They are served by 11 individual routes which collectively provide 10,862 weekly passenger trips.

Transport accessibility is rated excellent with residents typically located 142 meters from the nearest stop. Service frequency averages 1,551 trips per day across all routes, equating to approximately 241 weekly trips per individual stop.

The level of general health in South Melbourne is notably higher than the national average with both young and old age cohorts seeing low prevalence of common health conditions

South Melbourne shows superior health outcomes for both young and elderly populations, with low prevalence rates for common conditions. Approximately 68% of its total population (9,845 people) has private health cover, compared to Greater Melbourne's 71.9%. Nationally, this figure stands at 55.7%.

Mental health issues affect 9.2% and asthma impacts 7.3% of residents in South Melbourne. Notably, 72.3% of residents report no medical ailments, slightly lower than Greater Melbourne's 73.3%. The area has a senior population (aged 65 and over) of 15.2%, or 2,186 people. Health outcomes among seniors are above average, mirroring the general population's health profile.

South Melbourne was found to be more culturally diverse than the vast majority of local markets in Australia, upon assessment of a range of language and cultural background related metrics

South Melbourne has high cultural diversity, with 25.3% speaking a language other than English at home and 37.4% born overseas. Christianity is the main religion, at 37.2%. Judaism is overrepresented compared to Greater Melbourne, at 1.2% versus 3.7%.

The top three ancestry groups are English (24.2%), Australian (17.2%), and Other (12.5%). Notable divergences include Russian (0.8%, vs regional 0.9%), French (0.9%, vs 1.1%), and Greek (3.2%, vs 3.2%).

South Melbourne's population aligns closely with national norms in age terms

The median age in South Melbourne is 39 years, which is higher than Greater Melbourne's average of 37 and close to the national average of 38. Compared to Greater Melbourne, South Melbourne has a notably higher proportion of people aged 25-34 (23.2% versus 18.6%) but fewer people aged 5-14 (6.4% versus 9.0%). Nationally, the 25-34 age group comprises 14.5%. Post-2021 Census data shows an increase in the proportion of people aged 15-24 from 8.8% to 10.4%, and a rise in the 25-34 cohort from 21.7% to 23.2%, while the 45-54 group has decreased from 14.3% to 13.0%. By 2041, population forecasts indicate significant demographic changes for South Melbourne. The 45-54 age group is projected to grow by 64%, adding 1,189 people and reaching a total of 3,059 from the previous count of 1,869. The 15-24 age group will experience more modest growth at 5%, with an increase of 76 residents.