Clayton South

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

Clayton South's population was approximately 15,202 as of February 2026. This figure represents an increase of 1,821 people, a 13.6% rise from the 2021 Census which reported a population of 13,381. The growth is inferred from the estimated resident population of 15,138 in June 2024 and an additional 293 validated new addresses since the Census date. Clayton South's population density was 1,914 persons per square kilometer, above the average seen across national locations assessed by AreaSearch. The area's growth of 13.6% since the 2021 census exceeded the SA3 area's 6.9% and the national average, making it a growth leader in the region. Overseas migration contributed approximately 87.7% of overall population gains during recent periods.

AreaSearch adopted 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 utilized the VIC State Government's Regional/LGA projections released in 2023, making adjustments using weighted aggregation from LGA to SA2 levels. Growth rates by age group were applied across all areas for years 2032 to 2041. According to demographic trends, a significant population increase is forecast for Clayton South, with an expected expansion of 5,731 persons to 2041 based on the latest annual ERP population numbers, reflecting a total increase of 37.3% over the 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 annually over the past five financial years, totalling 426 homes. As of FY-26, 14 approvals have been recorded. On average, each dwelling built between FY-21 and FY-25 has resulted in an addition of 2.5 new residents per year, reflecting strong demand that supports property values. New homes are constructed at an average cost of $263,000, which is below the regional average, indicating more affordable housing options for buyers.

In this financial year, there have been $29.8 million in commercial approvals, suggesting robust commercial development activity. Compared to Greater Melbourne, Clayton South has 61.0% higher new home approvals per capita. However, building activity has slowed in recent years, with new developments comprising 15.0% detached houses and 85.0% townhouses or apartments. This shift towards higher-density living creates more affordable entry points for downsizers, investors, and first-home buyers, marking a significant change from the current housing pattern of 56.0% houses. Clayton South indicates a mature market with around 480 people per approval. According to AreaSearch's latest quarterly estimate, Clayton South is projected to add 5,667 residents by 2041.

If development rates remain constant, housing supply may struggle to keep pace with population growth, potentially intensifying buyer competition and supporting price increases.

Clayton South has moderate levels of nearby infrastructure activity, ranking in the 44thth percentile nationally

Twenty-six infrastructure projects have been identified by AreaSearch as potentially impacting the area. Key projects include Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, 1899-1901 Dandenong Road Mixed-Use Development, and Skylight Sandringham. The following list details those most likely to be 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 in Clayton South shows considerable strength compared to most other Australian regions

Clayton South has an educated workforce with professional services well represented. The unemployment rate was 3.1% in the past year, with estimated employment growth of 4.3%. As of September 2025, 8,560 residents were employed, and the unemployment rate was 1.5% below Greater Melbourne's rate of 4.7%.

Workforce participation was 67.9%, compared to Greater Melbourne's 71.0%. According to Census responses, 23.3% of residents worked from home. Employment is concentrated in health care & social assistance, manufacturing, and retail trade. Manufacturing has a strong presence with an employment share 1.5 times the regional level, while construction shows lower representation at 7.1%, compared to the regional average of 9.7%.

Many residents commute elsewhere for work based on Census data. Over the year to September 2025, employment increased by 4.3% and labour force by 4.9%, leading to an unemployment rise of 0.5 percentage points. National employment forecasts from May-25 project growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Clayton South's employment mix suggests local employment should increase by 6.3% over five years and 13.4% over ten years, though this is a simple weighting extrapolation for illustrative purposes and does not account for localised population projections.

Income levels sit below national averages according to AreaSearch assessment

According to AreaSearch's aggregation of ATO data released on June 30, 2023, Clayton South SA2 had a median income among taxpayers of $51,376 and an average level of $59,705. Both figures were below the national averages of $57,688 and $75,164 respectively for Greater Melbourne. Based on Wage Price Index growth of 8.25% since June 30, 2023, estimated incomes as of September 2025 would be approximately $55,615 (median) and $64,631 (average). The 2021 Census data shows Clayton South's household income rank at the 43rd percentile ($1,630 weekly), while personal income ranks at the 25th percentile. Income distribution reveals that 34.5% of locals (5,244 people) fall within the $1,500 - 2,999 category, similar to broader 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 4th decile.

Clayton South displays a diverse mix of dwelling types, with above-average rates of outright home ownership

Clayton South's dwelling structure, as per the latest Census, consisted of 56.0% houses and 43.9% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Clayton South was at 32.1%, similar to Melbourne metro, with mortgaged dwellings at 27.4% and rented ones at 40.6%. The median monthly mortgage repayment was $1,997, below the Melbourne metro average of $2,000. The median weekly rent figure was $381, compared to Melbourne metro's $390. Nationally, Clayton South's mortgage repayments were higher than the Australian average of $1,863, while rents exceeded the national figure of $375.

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

Family households constitute 69.8% of all households, including 31.8% couples with children, 24.3% couples without children, and 11.4% single parent families. Non-family households account for 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, larger than the Greater Melbourne average of 2.6.

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

Clayton South's educational attainment exceeds broader benchmarks. Among residents aged 15+, 39.1% hold university qualifications, compared to 26.7% in the SA3 area and 29.8% in the SA4 region. Bachelor degrees are most common 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.

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

Clayton South has 72 operational public transport stops, all of which are bus stops. These stops are served by 16 different routes that collectively facilitate 3,682 weekly passenger trips. The area's transport accessibility is rated as excellent, with residents on average being located 180 meters from the nearest transport stop. As a predominantly residential area, most residents commute outwards. Cars remain the primary mode of transportation, used by 78% of residents, while trains are used by 14%. On average, there are 1.2 vehicles per dwelling.

According to the 2021 Census, 23.3% of residents work from home, which may be partly due to COVID-19 conditions. The service frequency averages 526 trips per day across all routes, equating to approximately 51 weekly trips per individual stop.

Clayton South's residents boast exceedingly positive health performance metrics with younger cohorts in particular seeing very low prevalence of common health conditions

Clayton South's health outcomes show notable results based on AreaSearch's evaluation. Mortality rates and chronic condition prevalence were low, especially among younger cohorts. Private health cover was found to be relatively low at approximately 49% of the total population (around 7,433 people), compared to Greater Melbourne's 56.7% and the national average of 55.7%.

The most prevalent medical conditions in Clayton South were arthritis (affecting 5.7% of residents) and asthma (5.3%). Overall, 77.4% of residents reported being free from medical ailments, higher than Greater Melbourne's 72.6%. As of 2021, approximately 14.2% of Clayton South's population was aged 65 and over (about 2,166 people). While health outcomes among seniors were strong, they ranked lower nationally compared to the broader population.

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 has a population where 70.4% speak a language other than English at home, with 65.5% born overseas. Christianity is the predominant religion in Clayton South, comprising 39.3% of its population. Buddhism is notably higher compared to Greater Melbourne's average, making up 10.6% of Clayton South's population.

The top three ancestry groups are Other (22.7%), Chinese (17.8%), and Indian (10.8%), each significantly higher than regional averages. There are also notable divergences in Greek (9.2%), Sri Lankan (1.5%), and Vietnamese (4.3%) populations compared to regional averages.

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 considerably younger than Australia's median age of 38. Compared to Greater Melbourne, Clayton South has a higher proportion of residents aged 25-34 (24.0%), but fewer residents aged 5-14 (8.5%). This concentration of 25-34 year-olds is significantly higher than the national average of 14.4%. Between the 2021 Census and the present, the proportion of Clayton South's population aged 25 to 34 has increased from 23.1% to 24.0%, while the proportion of residents aged 75 to 84 has decreased from 5.6% to 4.8%. By 2041, demographic forecasts indicate substantial changes in Clayton South's population. The 25-34 age group is projected to grow by 28%, adding 1,014 residents and reaching a total of 4,669 residents.