Chelsea Heights
Statistical Area - sa2

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 is approximately 5,456 as of Aug 2025. This figure represents an increase of 63 people since the 2021 Census, which recorded a population of 5,393. The change is inferred from ABS's estimated resident population of 5,456 in Jun 2024 and five additional validated new addresses post-Census. This results in a density ratio of 1,705 persons per square kilometer, above the average across national locations assessed by AreaSearch. Overseas migration contributed approximately 60.2% of overall population gains during recent periods.

AreaSearch uses 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 employs 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. Based on latest population numbers, Chelsea Heights is expected to grow by approximately 638 persons by 2041, a total increase of about 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 each year. Between FY21 and FY25, 38 homes were approved, with two more approved so far in FY26. The population has declined recently, suggesting that the new supply has kept pace with demand, providing good options for buyers.

The average construction value of new properties is $679,000, indicating a focus on the premium market with high-end developments. This year, $5.6 million in commercial approvals have been registered, reflecting the area's residential character. 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, this activity is also lower, suggesting a mature market with possible development constraints.

New building activity comprises 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. Population forecasts indicate that Chelsea Heights will gain 638 residents by 2041. At current development rates, housing supply may struggle to match population growth, potentially increasing buyer competition and supporting price increases.

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

No factor impacts an area's performance more than changes to local infrastructure, major projects, and planning initiatives. AreaSearch has identified 0 projects likely to affect the area. Key projects are Monash Freeway Upgrade Stage 2, Frankston Line Level Crossing Removal Program, SRL East - Works Package C - Tunnels - Cheltenham To Glen Waverley, and EastLink Freeway Noble Park Section. The following list details those most relevant.

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

The labour market performance in Chelsea Heights lags significantly behind most other regions nationally

Chelsea Heights has a skilled workforce with notable representation in the construction sector. Its unemployment rate is 7.3%.

As of June 2025, 2848 residents are employed, with an unemployment rate at 2.7% above Greater Melbourne's 4.6%. Workforce participation mirrors Greater Melbourne's 64.1%. Major employment industries include health care & social assistance, construction, and manufacturing. Manufacturing stands out with a share of employment 1.6 times the regional level.

Conversely, professional & technical services have lower representation at 6.3% compared to the regional average of 10.1%. The area offers limited local employment opportunities based on Census data. Between June 2024 and June 2025, Chelsea Heights' labour force grew by 1.4%, but employment declined by 1.4%, leading to a rise in unemployment rate by 2.6 percentage points. Greater Melbourne saw employment growth of 3.5% during the same period, with unemployment rising by 0.5%. State-level data from Sep-25 shows Victoria's employment grew by 1.08% year-on-year, adding 39,880 jobs, with an unemployment rate of 4.7%, slightly higher than the national rate of 4.5%. National employment forecasts from Jobs and Skills Australia project growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Chelsea Heights' employment mix suggests local growth of approximately 6.2% over five years and 13.0% over ten years, though this is a simplified 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 ended June 2022 shows median income in Chelsea Heights was $53,213 and average income was $64,351. These figures are close to national averages of $54,892 (median) and $73,761 (average) for Greater Melbourne. Assuming a 10.11% Wage Price Index growth since June 2022, estimated median income in Chelsea Heights by March 2025 would be approximately $58,593, with average income around $70,857. Census data from 2021 shows incomes in Chelsea Heights are close to the national 53rd percentile for households, families, and individuals. Income brackets indicate that 33.5% of residents earn between $1,500 and $2,999 per year (1,827 individuals), similar to Melbourne's metropolitan region where this group makes up 32.8%. After housing costs, 85.6% of income remains for other expenses. Chelsea Heights' SEIFA income ranking places it in the sixth decile.

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

Chelsea Heights' dwelling structures, as per the latest Census, consisted of 79.0% houses and 21.0% other dwellings (semi-detached, apartments, 'other'). In comparison, Melbourne metro had 54.8% houses and 45.2% other dwellings. Home ownership in Chelsea Heights stood 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 average of $2,167. The median weekly rent in Chelsea Heights was $412, compared to Melbourne metro's $410. Nationally, Chelsea Heights' mortgage repayments were higher at $2,001 than the Australian average of $1,863, and rents exceeded the national figure of $375.

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

Family households constitute 74.8% of all households, comprising 39.5% couples with children, 23.2% couples without children, and 11.4% single parent families. Non-family households make up the remaining 25.2%, with lone person households at 23.4% and group households comprising 1.6% of the total. 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 faces educational challenges, with university qualification rates at 24.7%, significantly lower than the SA4 region average of 46.0%. This presents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees are the most common, at 16.9%, followed by postgraduate qualifications (5.2%) and graduate diplomas (2.6%). Trade and technical skills are prominent, with 36.2% of residents aged 15+ holding vocational credentials – advanced diplomas (12.1%) and certificates (24.1%).

Educational participation is high, with 28.9% of residents currently enrolled in formal education, including 10.3% in primary, 7.7% in secondary, and 4.0% in tertiary education. Chelsea Heights Primary School serves the area, with an enrollment of 406 students as of a recent report. The school focuses exclusively on primary education, with socio-educational conditions above average (ICSEA: 1050). Secondary options are available in surrounding areas. Local school capacity is limited, with 7.4 places per 100 residents compared to the regional average of 15.7, leading many families to travel for schooling.

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

Analysis of public transport in Chelsea Heights indicates that there are currently 41 operational transport stops. These stops serve a mix of bus routes, with a total of 7 individual routes providing service. The weekly passenger trips facilitated by these routes amount to 1,486.

Transport accessibility is rated as excellent, with residents typically residing within 154 meters of the nearest stop. Service frequency averages at 212 trips per day across all routes, translating 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 (around 2,831 people), compared to 58.2% across Greater Melbourne. The most common medical conditions are asthma and arthritis, affecting 8.6% and 7.8% of residents respectively. 68.8% of residents reported no medical ailments, compared to 70.4% across Greater Melbourne. 19.9% of residents are aged 65 and over (around 1,084 people), broadly in line with the general population's health profile.

Chelsea Heights 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

Chelsea Heights has a higher cultural diversity than most local areas, with 26.1% of its population born overseas and 17.2% speaking a language other than English at home. Christianity is the predominant religion in Chelsea Heights, accounting for 48.5% of its residents. Notably, Judaism is overrepresented here compared to Greater Melbourne, making up 0.3% versus 1.1%.

The top three ancestral groups are English (25.5%), Australian (25.2%), and Other (8.4%). Some ethnic groups have notable differences in representation: Russian is slightly higher at 0.9%, Sri Lankan is more prominent at 1.2%, while Hungarian remains the same at 0.4%.

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, the age group of 75-84 years is notably over-represented in Chelsea Heights at 8.2%, while the 25-34 year-olds are under-represented at 7.9%. Between 2021 and present day, the percentage of the population aged 75 to 84 has increased from 6.3% to 8.2%, while the 15 to 24 age group has risen from 10.9% to 12.1%. Conversely, the proportion of those aged 25 to 34 has decreased from 9.9% to 7.9%. Demographic projections suggest that by 2041, Chelsea Heights' age profile will change significantly. The 75 to 84 age group is projected to expand by 182 people (41%), from 444 to 627 individuals. Notably, the combined age groups of 65 and above are expected to contribute to 56% of total population growth, reflecting the area's aging demographic trend. Meanwhile, the age cohorts of 0 to 4 years and 5 to 14 years are anticipated to experience population declines.