Clayton South
Statistical Area - sa2

Population growth drivers in Clayton South are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

As of Aug 2025, Clayton South's population is around 15,348. This reflects an increase of 1,967 people since the 2021 Census, which reported a population of 13,381. The change was inferred from ABS's estimated resident population of 15,138 as of June 2024 and an additional 281 validated new addresses since the Census date. This results in a density ratio of 1,933 persons per square kilometer, above the average seen across national locations assessed by AreaSearch. Clayton South's growth rate of 14.7% since the 2021 census exceeded both the SA3 area (6.7%) and the national average. Overseas migration contributed approximately 87.7% of overall population gains during recent periods, driving this growth.

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, with adjustments made 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. Based on the latest population numbers, Clayton South is forecasted to experience significant population increase in the top quartile of national areas, with an expected expansion of 5,731 persons to 2041, marking a total increase of 36.0% over these 17 years.

Recent residential development output has been above average within Clayton South when compared nationally

Clayton South has recorded approximately 85 residential properties granted approval each year. Development approval data is produced by the Australian Bureau of Statistics on a financial year basis, totalling 426 approvals across the past five financial years from FY-21 to FY-25, with two approvals so far in FY-26. On average, 2.5 new residents per year have been associated with each dwelling over these five financial years, indicating solid demand that supports property values. New homes are being built at an average construction cost value of $475,000.

There have also been $29.8 million in commercial approvals in the current financial year, suggesting strong commercial development momentum. Compared to Greater Melbourne, Clayton South shows 61.0% higher new home approvals per person, offering greater choice for buyers despite a slowdown in building activity over recent years. New building activity comprises 15.0% detached houses and 85.0% townhouses or apartments, reflecting a shift towards higher-density living that creates more affordable entry points and caters to downsizers, investors, and first-home buyers. This marks a significant departure from existing housing patterns, which currently consist of 56.0% houses, likely due to diminishing developable land availability and evolving lifestyle preferences. Clayton South's population growth indicates a mature market, with approximately 480 people per approval. Future projections suggest that Clayton South will add around 5,521 residents by 2041.

If current development rates continue, housing supply may struggle to keep pace with population growth, potentially increasing buyer competition and supporting price increases.

Clayton South has strong levels of nearby infrastructure activity, ranking in the top 40% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 26 projects that could affect the region. Notable projects include Sanctuary Sandringham, Bluff Road Hampton East Housing Development, Skylight Sandringham, and Bayside Gallery Redevelopment. The following list details those expected to be most relevant.

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

The employment environment in Clayton South shows above-average strength when compared nationally

Clayton South has a highly educated workforce with strong representation in professional services. Its unemployment rate was 3.2% as of June 2025, which is below Greater Melbourne's rate of 4.6%.

The area experienced an estimated employment growth of 3.7% over the past year. As of June 2025, 8,496 residents were in work, with a workforce participation rate of 60.9%, slightly below Greater Melbourne's 64.1%. Employment is concentrated in health care & social assistance, manufacturing, and retail trade. Manufacturing shows particularly strong specialization, with an employment share 1.5 times the regional level.

Conversely, construction has lower representation at 7.1% compared to the regional average of 9.7%. Over the year to June 2025, employment increased by 3.7% while labour force grew by 4.4%, leading to an unemployment rise of 0.7 percentage points. By comparison, Greater Melbourne recorded employment growth of 3.5% and unemployment rose by 0.5 percentage points. State-level data from Sep-25 shows VIC's employment grew by 1.08% year-on-year, with the state unemployment rate at 4.7%. Jobs and Skills Australia forecasts national employment to expand by 6.6% over five years and 13.7% over ten years. Applying these projections to Clayton South's employment mix suggests local growth of approximately 6.3% over five years and 13.4% over ten years.

Income levels sit below national averages according to AreaSearch assessment

AreaSearch's aggregation of ATO data for financial year 2022 shows Clayton South had a median taxpayer income of $48,722 and an average income of $56,716. These figures are below the national averages of $54,892 and $73,761 respectively in Greater Melbourne. Based on Wage Price Index growth of 10.11% since financial year 2022, estimated incomes as of March 2025 would be approximately $53,648 (median) and $62,450 (average). According to the 2021 Census, Clayton South's household income ranks at the 43rd percentile ($1,630 weekly), with personal income at the 26th percentile. Income distribution shows that 34.5% of locals (5,295 people) fall into the $1,500 - 2,999 category, consistent with regional trends of 32.8%. Housing affordability pressures are severe, with only 82.8% of income remaining after housing costs, ranking at the 42nd percentile. The area's SEIFA income ranking places it in the 5th decile.

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

Clayton South's dwelling structures, as per the latest Census data, consisted of 56.0% houses and 43.9% other dwellings (semi-detached, apartments, 'other' dwellings). This contrasts with Melbourne metro's figures of 72.1% houses and 28.0% other dwellings. Home ownership in Clayton South was 32.1%, similar to Melbourne metro's level. Mortgaged dwellings accounted for 27.4% and rented ones for 40.6%. The median monthly mortgage repayment in the area was $1,997, higher than Melbourne metro's average of $1,800. The median weekly rent figure in Clayton South was $381, compared to Melbourne metro's $350. Nationally, Clayton South's mortgage repayments exceed the Australian average of $1,863, while rents are higher than the national figure of $375.

Clayton South features high concentrations of group households, with a lower-than-average median household size

Family households account for 69.8% of all households, including 31.8% composed of couples with children, 24.3% consisting of couples without children, and 11.4% being single parent families. Non-family households make up the remaining 30.2%, with lone person households at 21.9% and group households comprising 8.4%. The median household size is 2.7 people, which is smaller than the Greater Melbourne average of 2.8.

Educational attainment in Clayton South aligns closely with national averages, showing typical qualification patterns and performance metrics

Clayton South's educational attainment is notably high, with 39.1% of residents aged 15 and above holding university qualifications, surpassing the broader SA3 area's 26.7% and the SA4 region's 29.8%. Bachelor degrees are the most prevalent at 23.7%, followed by postgraduate qualifications (13.5%) and graduate diplomas (1.9%). Vocational pathways account for 21.9% of qualifications, with advanced diplomas at 10.1% and certificates at 11.8%. Educational participation is high, with 30.5% of residents currently enrolled in formal education.

This includes 9.7% in tertiary education, 6.8% in primary education, and 5.4% pursuing secondary education. Clayton South's five schools have a combined enrollment reaching 1,149 students as of the latest available data. The area demonstrates typical Australian school conditions (ICSEA: 1019) with balanced educational opportunities. Education provision is balanced with three primary and two secondary schools serving distinct age groups. However, local school capacity is limited at 7.5 places per 100 residents compared to the regional average of 15.5, leading many families to travel to nearby areas for schooling. Note that where schools show 'n/a' for enrolments, please refer to the parent campus.

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

Transport analysis indicates 72 active stops in Clayton South, offering train and bus services. These are covered by 15 routes, facilitating 4,579 weekly passenger trips. Residential proximity to transport is rated excellent, with typical distances of 180 meters to the nearest stop.

Daily service frequency averages 654 trips across all routes, equating to around 63 weekly trips per individual stop.

Clayton South's residents boast exceedingly positive health performance metrics with both young and old age cohorts seeing low prevalence of common health conditions

Health outcomes data shows excellent results in Clayton South, with both younger and older age groups experiencing low prevalence of common health conditions. Private health cover is held by approximately 48% of the total population (~7,367 people), which is lower than the national average of 55.3%.

The most prevalent medical conditions are arthritis and asthma, affecting 5.7% and 5.3% of residents respectively. 77.4% of residents claim to be completely free from medical ailments, compared to 75.1% across Greater Melbourne. Clayton South has a lower proportion of residents aged 65 and over at 14.2% (2,174 people), compared to Greater Melbourne's 17.4%. Senior health outcomes are notably strong, generally aligning with the overall population's health profile.

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

Clayton South, as of the 2016 Census, had a population where 70.4% spoke languages other than English at home. Of this population, 65.5%, born overseas, contributed to its cultural diversity. Christianity was found to be the predominant religion in Clayton South, comprising 39.3%.

However, Buddhism stood out with 10.6%, significantly higher than Greater Melbourne's average of 15.2%. Ancestry-wise, the top groups were Other (22.7%), Chinese (17.8%) and Indian (10.8%). Notably, Greeks made up 9.2% compared to the regional average of 3.8%, Sri Lankans constituted 1.5% versus 1.8%, and Vietnamese comprised 4.3% against a regional average of 8.5%.

Clayton South hosts a young demographic, positioning it in the bottom quartile nationwide

Clayton South's median age is 34 years, which is lower than Greater Melbourne's average of 37 and Australia's national average of 38 years. Compared to Greater Melbourne, Clayton South has a higher proportion of residents aged 25-34 (24.5%), but fewer residents aged 5-14 (8.4%). This proportion for the 25-34 age group is considerably higher than the national average of 14.5%. Between the 2021 Census and the present, the proportion of Clayton South's population in the 25 to 34 age group has increased from 23.1% to 24.5%, while the proportion for the 45 to 54 age group has decreased from 10.8% to 10.1%. Population forecasts indicate significant demographic changes by 2041, with the strongest projected growth in the 25 to 34 age cohort, which is expected to grow by 24%, adding 907 residents and reaching a total of 4,669.