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

Clayton South's population was around 15,356 as of November 2025. This reflected an increase of 1,975 people since the 2021 Census, which reported a population of 13,381. The change was inferred from ABS estimates showing an estimated resident population of 15,138 in June 2024 and an additional 284 validated new addresses since the Census date. This resulted in a density ratio of 1,934 persons per square kilometer, higher than the average seen across national locations assessed by AreaSearch. Clayton South's growth rate of 14.8% since the 2021 census exceeded both the SA3 area's 6.8% and the national average, marking it as 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, with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group were applied across all areas for years 2032 to 2041. Based on demographic trends and 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, indicating a total increase of 35.9% over the 17-year period.

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, 8 approvals have been recorded. Each dwelling built between FY-21 and FY-25 has resulted in an average of 2.5 new residents per year. The average construction cost value of new homes is $263,000, which is below the regional average, suggesting more affordable housing options for buyers.

In FY-26, there have been $29.8 million in commercial approvals, indicating strong commercial development momentum. Compared to Greater Melbourne, Clayton South has 61.0% higher new home approvals per person. However, building activity has slowed in recent years, with 15.0% detached houses and 85.0% townhouses or apartments being developed. This shift from the current housing pattern of 56.0% houses suggests diminishing developable land availability and responds to evolving lifestyle preferences and housing affordability needs. Clayton South indicates a mature market with around 480 people per approval. Future projections show Clayton South adding 5,513 residents by 2041.

At current development rates, housing supply may struggle to match population growth, potentially heightening 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 influence an area's performance. AreaSearch has identified 28 projects likely impacting the area. Key projects include Bluff Road Hampton East Housing Development, Sanctuary Sandringham, Skylight Sandringham, and Bayside Gallery Redevelopment. The following list details those most relevant.

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

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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 is 3.2%, below Greater Melbourne's 4.6%.

Employment grew by 3.7% over the year to June 2025. As of that date, 8,496 residents are employed, with an unemployment rate of 1.4% lower than Greater Melbourne's. Workforce participation is lower at 60.9%, compared to Greater Melbourne's 64.1%. Key industries include 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% versus the regional average of 9.7%. Many residents commute elsewhere for work. 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. 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 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

In AreaSearch's aggregation of ATO data released for financial year 2022, Clayton South had a median income among taxpayers of $48,722 and an average level of $56,716. These figures are below the national averages of $54,892 and $73,761 respectively across Greater Melbourne. Based on Wage Price Index growth of 12.16% since financial year 2022, current estimates for Clayton South would be approximately $54,647 (median) and $63,613 (average) as of September 2025. According to the 2021 Census, household income ranks at the 43rd percentile ($1,630 weekly), while personal income sits at the 26th percentile. In terms of income distribution, 34.5% of locals (5,297 people) fall within the $1,500 - 2,999 category, consistent with broader trends across the region showing 32.8% in the same category. 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 dwellings, as per the latest Census, consisted of 56.0% houses and 43.9% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Melbourne metro's 72.1% houses and 28.0% 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 in the area was $1,997, higher than Melbourne metro's average of $1,800. The median weekly rent figure for Clayton South was $381, compared to Melbourne metro's $350. Nationally, Clayton South's mortgage repayments exceeded the Australian average of $1,863, while rents were 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% couples with children, 24.3% couples without children, and 11.4% single parent families. Non-family households constitute 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 exceeds broader benchmarks with 39.1% of residents aged 15+ holding university qualifications, compared to 26.7% in the SA3 area and 29.8% in the SA4 region. Bachelor degrees are most prevalent at 23.7%, followed by postgraduate qualifications (13.5%) and graduate diplomas (1.9%). Vocational pathways account for 21.9%, 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: 9.7% in tertiary, 6.8% in primary, and 5.4% pursuing secondary education.

Clayton South's five schools have a combined enrollment of 1,149 students, serving typical Australian school conditions (ICSEA: 1019) with balanced educational opportunities. The area has three primary and two secondary schools, but limited local capacity (7.5 places per 100 residents vs regional 15.5) leads 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

Clayton South has 72 active public transport stops offering a mix of train and bus services. These stops are served by 15 different routes, facilitating 4,579 weekly passenger trips in total. Residents enjoy excellent transport accessibility, with an average distance of 180 meters to the nearest stop.

The service frequency across all routes is 654 trips per day, which translates to approximately 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

Clayton South shows excellent health outcomes across age groups. Both younger and older residents have a low prevalence of common health conditions.

Private health cover stands at approximately 48% (around 7,370 people), below the national average of 55.3%. The most prevalent medical conditions are arthritis (affecting 5.7%) and asthma (5.3%). A total of 77.4% report no medical ailments, compared to 75.1% in Greater Melbourne. As of 2021, 14.2% of Clayton South residents are aged 65 or over (2,175 people), lower than the Greater Melbourne average of 17.4%. Seniors' health outcomes align with those of the general 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 high level of cultural diversity, with 70.4% of its population speaking a language other than English at home and 65.5% born overseas. Christianity is the predominant religion in Clayton South, accounting for 39.3% of the population. However, Buddhism is significantly more prevalent in Clayton South compared to Greater Melbourne, making up 10.6% versus 15.2%.

The top three ancestry groups in Clayton South are Other at 22.7%, Chinese at 17.8%, and Indian at 10.8%. While the Other group is lower than the regional average of 29.1%, Chinese representation is substantially higher. Additionally, Greek (9.2% vs 3.8%), Sri Lankan (1.5% vs 1.8%), and Vietnamese (4.3% vs 8.5%) ethnic groups are notably overrepresented in Clayton South compared to the 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 years 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 concentration of 25-34 year-olds is significantly higher than the national average of 14.5%. Between the 2021 Census and the present, the proportion of Clayton South's population aged 25 to 34 has increased from 23.1% to 24.5%, while the proportion of residents aged 45 to 54 has declined from 10.8% to 10.1%. By 2041, population forecasts indicate substantial demographic shifts in Clayton South, with the strongest projected growth occurring among the 25 to 34 age group, which is expected to grow by 24%, adding 905 residents and reaching a total of 4,669.