Chelsea Heights

An assessment of population growth drivers in Chelsea Heights reveals an overall ranking slightly below national averages considering recent, and medium term trends

Chelsea Heights' population was 5,393 people as of the 2021 Census. By Nov 2025, this had increased to around 5,456 people, a rise of 63 individuals (1.2%). This change is inferred from an estimated resident population of 5,456 in June 2024 and the addition of 5 validated new addresses since the Census date. The population density was approximately 1,705 persons per square kilometer, exceeding national averages assessed by AreaSearch. Overseas migration contributed about 60.2% of overall population gains recently.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered, they utilise VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. By 2041, Chelsea Heights is expected to grow by 638 persons based on the latest annual ERP population numbers, reflecting a total gain of 11.7% over the 17-year period.

The level of residential development activity in Chelsea Heights is very low in comparison to the average area assessed nationally by AreaSearch

Chelsea Heights has seen approximately seven new homes approved annually. Over the past five financial years, from FY21 to FY25, 38 homes were approved, with two more approved in FY26 so far. The population decline in recent years suggests that new supply has likely kept pace with demand, providing good options for buyers.

The average expected construction cost of new properties is $412,000. In the current financial year, $5.6 million in commercial development approvals have been recorded, indicating Chelsea Heights' primarily residential nature. Compared to Greater Melbourne, Chelsea Heights has significantly less development activity, 74.0% below the regional average per person. This constrained new construction typically reinforces demand and pricing for existing dwellings. Nationally, development activity is also lower, reflecting market maturity and possible development constraints.

New building activity consists of 80.0% detached houses and 20.0% medium and high-density housing, maintaining the area's suburban identity with a concentration of family homes suited to buyers seeking space. With around 1130 people per dwelling approval, Chelsea Heights reflects a highly mature market. According to AreaSearch's latest quarterly estimate, Chelsea Heights is forecasted to gain 638 residents by 2041. At current development rates, housing supply may struggle to match population growth, potentially intensifying buyer competition and supporting price increases.

Chelsea Heights has moderate levels of nearby infrastructure activity, ranking in the 46thth percentile nationally

Area infrastructure changes significantly influence performance. AreaSearch identified zero projects impacting the area. Key projects include The Dell by Stockland, Aspendale Gardens Shopping Centre Redevelopment, Monash Freeway Upgrade Stage 2, and Frankston Line Level Crossing Removal Program. Below list details those likely 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 labour market performance in Chelsea Heights lags significantly behind most other regions nationally

Chelsea Heights has a skilled workforce with 2821 residents employed as of September 2025. The unemployment rate is 6.9%.

In comparison, Greater Melbourne's unemployment rate is 4.7% and its workforce participation rate is 64.1%, both figures being lower than Chelsea Heights'. Major employment industries are healthcare & social assistance, construction, and manufacturing. Manufacturing particularly stands out with an employment share of 1.6 times the regional level. However, professional & technical services have a lower representation at 6.3% compared to the regional average of 10.1%.

The area's predominantly residential nature suggests limited local employment opportunities. Between September 2024 and September 2025, Chelsea Heights' labour force increased by 0.4%, while employment decreased by 0.9%, leading to a rise in unemployment rate by 1.3 percentage points. Meanwhile, Greater Melbourne saw employment growth of 3.0% and labour force growth of 3.3%, with unemployment rising by only 0.3 percentage points. Statewide, Victoria's employment grew by 1.13% year-on-year to November 25, adding 41,950 jobs, with the state unemployment rate at 4.7%. Nationally, employment is forecast to expand by 6.6% over five years and 13.7% over ten years. Applying these projections to Chelsea Heights' employment mix suggests local employment should increase by 6.2% over five years and 13.0% over ten years, though this is a simple extrapolation for illustrative purposes only.

The economic profile demonstrates above-average performance, with income metrics exceeding national benchmarks based on AreaSearch comparative assessment

AreaSearch's latest postcode level ATO data for financial year ending June 2022 indicates that median income in Chelsea Heights SA2 is $53,213 and average income is $64,351. This is comparable to national averages but lower than Greater Melbourne's median of $54,892 and average of $73,761. Based on Wage Price Index growth rate of 12.16% from July 2022 to September 2025, estimated median income in Chelsea Heights would be approximately $59,684 and average income $72,176 by the latter date. According to Census 2021 data, incomes in Chelsea Heights fall around the 53rd percentile nationally. Income brackets show that 33.5% of individuals earn between $1,500 and $2,999 annually, similar to metropolitan Melbourne's 32.8%. After housing costs, 85.6% of income remains for other expenses. Chelsea Heights' SEIFA income ranking places it in the 6th decile nationally.

Chelsea Heights is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

As per Chelsea Heights' latest Census evaluation, dwelling structures consisted of 79.0% houses and 21.0% other dwellings (semi-detached, apartments, 'other'). In contrast, Melbourne metro had 54.8% houses and 45.2% other dwellings. Home ownership in Chelsea Heights was at 40.4%, with mortgaged dwellings at 46.3% and rented ones at 13.3%. The median monthly mortgage repayment was $2,001, lower than Melbourne metro's $2,167. Median weekly rent in Chelsea Heights was $412, slightly higher than Melbourne metro's $410. Nationally, Chelsea Heights' mortgage repayments exceeded the Australian average of $1,863, while rents were higher than the national figure of $375.

Chelsea Heights has a typical household mix, with a higher-than-average median household size

Family households account for 74.8% of all households, including 39.5% couples with children, 23.2% couples without children, and 11.4% single parent families. Non-family households constitute the remaining 25.2%, with lone person households at 23.4% and group households comprising 1.6%. The median household size is 2.6 people, larger than the Greater Melbourne average of 2.4.

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

The area's university qualification rate is 24.7%, significantly lower than the SA4 region average of 46.0%. Bachelor degrees are most prevalent at 16.9%, followed by postgraduate qualifications (5.2%) and graduate diplomas (2.6%). Vocational credentials are held by 36.2% of residents aged 15+, with advanced diplomas at 12.1% and certificates at 24.1%. Educational participation is high, with 28.9% currently enrolled in formal education.

This includes 10.3% in primary education, 7.7% in secondary education, and 4.0% pursuing tertiary education.

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

Transport analysis shows 41 active stops operating in Chelsea Heights, serving a mix of bus routes. These stops are covered by 7 individual routes, collectively handling 1,486 weekly passenger trips. Transport accessibility is rated excellent, with residents typically located 154 meters from the nearest stop.

Service frequency averages 212 trips per day across all routes, equating to approximately 36 weekly trips per individual stop.

Chelsea Heights's residents are relatively healthy in comparison to broader Australia with common health conditions slightly more prevalent than average across both younger and older age cohorts

Chelsea Heights' health metrics are close to national benchmarks. Common health conditions are slightly more prevalent than average across both younger and older age cohorts.

The rate of private health cover is approximately 52% of the total population, which consists of about 2,831 people, compared to 58.2% in Greater Melbourne. Asthma and arthritis are the most common medical conditions in the area, affecting 8.6% and 7.8% of residents respectively. About 68.8% of residents report being completely clear of medical ailments, compared to 70.4% across Greater Melbourne. Around 19.9% of residents are aged 65 and over, which amounts to about 1,084 people. This is broadly in line with the general population's health profile.

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

Chelsea Heights had a higher cultural diversity than most local areas, with 26.1% of its residents born overseas and 17.2% speaking languages other than English at home. Christianity was the predominant religion in Chelsea Heights as of 2021, accounting for 48.5% of the population. Judaism, however, showed an overrepresentation in Chelsea Heights with 0.3%, compared to Greater Melbourne's 1.1%.

Regarding ancestry, the top three groups were English (25.5%), Australian (25.2%), and Other (8.4%). Notable differences existed for Russian (0.9% vs regional 1.0%), Sri Lankan (1.2% vs 0.6%), and Hungarian (0.4%) groups.

Chelsea Heights's population is slightly older than the national pattern

Chelsea Heights has a median age of 40, which is slightly higher than Greater Melbourne's figure of 37 and Australia's national average of 38 years. Compared to the Greater Melbourne average, Chelsea Heights has an over-representation of the 75-84 age cohort (8.2% locally), while the 25-34 year-olds are under-represented (7.9%). Between 2021 and present, the 75-84 age group grew from 6.3% to 8.2%, and the 15-24 cohort increased from 10.9% to 12.1%. Conversely, the 25-34 age group declined from 9.9% to 7.9%. By 2041, Chelsea Heights' age profile is projected to change significantly. The 75-84 age cohort is expected to expand by 182 people (41%), growing from 444 to 627 individuals. Notably, the combined 65+ age groups are projected to account for 56% of total population growth, reflecting the area's aging demographic trend. Meanwhile, the 5-14 and 0-4 age cohorts are expected to experience population declines.