Watsonia

Watsonia has seen population growth performance typically on par with national averages when looking at short and medium term trends

As of November 2025, the estimated population for the Watsonia statistical area (Lv2) is around 5,593 people. This figure reflects an increase of 241 individuals since the 2021 Census, which reported a population of 5,352 people. The change is inferred from AreaSearch's estimation of the resident population at 5,566 following examination of the latest ERP data release by the ABS in June 2024 and an additional 52 validated new addresses since the Census date. This level of population results in a density ratio of 2,431 persons per square kilometer, placing it in the upper quartile relative to national locations assessed by AreaSearch. The primary driver for the area's population growth was overseas migration, contributing approximately 51.0% 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 any SA2 areas not covered by this data, AreaSearch utilises the VIC State Government's Regional/LGA projections released in 2023, making adjustments employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. Looking ahead with demographic trends, the Watsonia (SA2) is forecasted to experience significant population increase in the top quartile of statistical areas across the nation. By 2041, the area is expected to grow by 1,678 persons based on aggregated SA2-level projections, reflecting a gain of 28.7% in total over the 17 years.

Residential development activity is lower than average in Watsonia 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, Watsonia has seen around 25 new homes approved each year. Over the past 5 financial years, between FY-21 and FY-25, approximately 126 homes were approved, with a further 9 approved so far in FY-26. On average, there have been only 0 people moving to the area per dwelling built over these years, indicating that new supply is keeping pace with or exceeding demand.

This offers ample buyer choice and creates capacity for population growth beyond current forecasts. The average construction cost value of new properties is $521,000, suggesting developers are focusing on the premium market with high-end developments. In FY-26, $23.6 million in commercial approvals have been registered, indicating balanced commercial development activity compared to previous years. When measured against Greater Melbourne, Watsonia has around two-thirds the rate of new dwelling approvals per person and places among the 56th percentile of areas assessed nationally. The current development mix consists of 50.0% standalone homes and 50.0% medium and high-density housing, marking a notable shift from the area's existing housing composition, which is currently 86.0% houses.

This trend indicates decreasing availability of developable sites and reflects changing lifestyles and the need for more diverse, affordable housing options. The location has approximately 274 people per dwelling approval, indicating a low density market. Population forecasts indicate Watsonia will gain 1,603 residents through to 2041, based on the latest AreaSearch quarterly estimate. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth in the future.

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

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified one major project likely affecting this region: 149 McKimmies Road Residential Precinct, M80 Ring Road Completion, Diamond Creek Community Infrastructure Master Plan, and Hurstbridge Rail Line Upgrades (Watsonia-Eltham) are key projects. The following details those most relevant.

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The labour market in Watsonia demonstrates typical performance when compared to similar areas across Australia

Watsonia has a well-educated workforce with professional services being strongly represented. The unemployment rate is 3.5% as of September 2025.

This is 1.2 percentage points lower than Greater Melbourne's rate of 4.7%. Workforce participation in Watsonia is similar to Greater Melbourne's at 64.1%. The dominant employment sectors are health care & social assistance, education & training, and construction. Health care & social assistance has particularly high concentration with employment levels at 1.2 times the regional average.

Manufacturing employs only 5.3% of local workers compared to Greater Melbourne's 7.2%. The area appears to offer limited local employment opportunities as indicated by Census data on working population versus resident population. Over the 12 months to September 2025, labour force levels increased by 0.1% while employment decreased by 0.3%, causing unemployment to rise by 0.3 percentage points in Watsonia. This contrasts with Greater Melbourne where employment rose by 3.0%. State-level data from 25-Nov shows VIC 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%. Jobs and Skills Australia's national employment forecasts from May-25 suggest that Watsonia's employment should increase by 7.0% over five years and 14.3% over ten years based on industry-specific projections applied to its current employment mix.

Income analysis reveals strong economic positioning, with the area outperforming 60% of locations assessed nationally by AreaSearch

AreaSearch's latest postcode level ATO data for financial year 2023 indicates that Watsonia's median income among taxpayers is $60,696. The average income in the suburb is $72,429. Both figures are above the national average. In comparison, Greater Melbourne has a median income of $57,688 and an average income of $75,164. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates for Watsonia's median and average incomes as of September 2025 would be approximately $65,703 and $78,404 respectively. Census 2021 income data shows that in Watsonia, household, family, and personal incomes cluster around the 62nd percentile nationally. The $1,500 - $2,999 income bracket dominates with 32.4% of residents (1,812 people), consistent with broader trends across the surrounding region showing 32.8% in the same category. High housing costs consume 15.2% of income, but strong earnings place disposable income at the 59th percentile nationally. The area's SEIFA income ranking places it in the 6th decile.

Watsonia is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

In Watsonia, as per the latest Census evaluation, 86.1% of dwellings were houses, with the remaining 13.9% being semi-detached homes, apartments, or other types. This is compared to Melbourne metro's 76.0% houses and 24.0% other dwellings. Home ownership in Watsonia stood at 33.2%, with mortgaged dwellings at 36.5% and rented ones at 30.3%. The median monthly mortgage repayment was $2,019, lower than Melbourne metro's $2,167. The median weekly rent in Watsonia was $385, slightly higher than the national average of $375. Nationally, Watsonia's mortgage repayments were higher at $2,019 compared to the Australian average of $1,863.

Watsonia has a typical household mix, with a fairly typical median household size

Family households constitute 69.5% of all households, including 31.7% couples with children, 24.2% couples without children, and 12.3% single parent families. Non-family households comprise the remaining 30.5%, with lone person households at 26.7% and group households making up 3.7%. The median household size is 2.5 people, which aligns with the Greater Melbourne average.

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

Educational qualifications in Watsonia trail regional benchmarks, with 34.8% of residents aged 15+ holding university degrees compared to 41.2% in SA3 area. This gap highlights potential for educational development and skills enhancement. Bachelor degrees are the most common at 22.3%, followed by postgraduate qualifications (8.6%) and graduate diplomas (3.9%). Trade and technical skills feature prominently, with 31.0% of residents aged 15+ holding vocational credentials – advanced diplomas (10.7%) and certificates (20.3%).

Educational participation is notably high, with 27.4% of residents currently enrolled in formal education. This includes 9.6% in primary education, 6.5% in secondary education, and 4.8% pursuing tertiary education.

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

Watsonia has 31 active public transport stops operating within the area. These include a mix of train and bus services. There are 7 individual routes serving these stops, collectively providing 3,017 weekly passenger trips.

The average distance from residents to the nearest transport stop is 182 meters. Service frequency averages 431 trips per day across all routes, equating to approximately 97 weekly trips per individual stop.

Health outcomes in Watsonia 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

Watsonia's health indicators show below-average results compared to national averages. Common health conditions are somewhat typical but higher among older residents.

Private health cover is very high at approximately 55%, impacting about 3,100 people, which is lower than Greater Melbourne's 60.9%. The most prevalent medical conditions are mental health issues and asthma, affecting 9.0% and 8.7% of residents respectively. About 68.0% report being completely free of medical ailments, compared to 69.3% in Greater Melbourne. Watsonia has 17.9% of its population aged 65 and over (1,001 people), lower than Greater Melbourne's 19.8%. Health outcomes among seniors require more attention than the broader population.

The level of cultural diversity witnessed in Watsonia was found to be slightly above average when compared nationally for a number of language and cultural background related metrics

Watsonia's population shows above-average cultural diversity, with 21.7% born overseas and 19.7% speaking a language other than English at home. Christianity is the predominant religion in Watsonia, comprising 43.4%. Judaism, however, is overrepresented compared to Greater Melbourne, at 0.3% versus 0.2%.

The top three ancestry groups are Australian (24.8%), English (24.3%), and Irish (9.8%). Notably, Macedonian ethnicity is higher in Watsonia than regionally, at 0.8% compared to 1.1%, while Italian and Croatian ethnicities show lower representation: Italian at 5.1% versus 7.7%, and Croatian at 0.8%.

Watsonia's population aligns closely with national norms in age terms

The median age in Watsonia is close to Greater Melbourne's average of 37 years, and equivalent to the Australian median of 38 years. Compared to Greater Melbourne, Watsonia has a higher percentage of 0-4 year-olds (7.3%) but fewer 15-24 year-olds (9.4%). Between the 2021 Census and 2026, the population aged 75-84 grew from 5.5% to 6.5%. Conversely, the percentage of those aged 25-34 declined from 15.3% to 14.6%. By 2041, Watsonia's age composition is expected to shift notably. The 45-54 age group is projected to grow by 37%, adding 259 people to reach 970 from 710. The 0-4 age group will experience more modest growth of 10%, with an increase of 40 residents.