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 around 15,356 as of Nov 2025. This showed an increase of 1,975 people from the 2021 Census figure of 13,381. The change was inferred from ABS' June 2024 estimate of 15,138 and validated new addresses since then. This resulted in a population density of 1,934 persons per square kilometer, above the national average assessed by AreaSearch. Clayton South's growth rate of 14.8% since 2021 exceeded its SA3 area (6.8%) and the national average. Overseas migration contributed approximately 87.7% to this population gain.

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, it utilises VIC State Government's Regional/LGA projections from 2023, adjusting using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. By 2041, Clayton South is forecasted to increase by 5,731 persons, reflecting a total growth of 35.9% over the 17-year period based on latest annual ERP population numbers.

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 over the past five financial years, totalling 426 homes. As of FY-26, 14 approvals have been recorded. Over these five years, an average of 2.5 new residents per dwelling built was gained annually, reflecting robust demand that supports property values. New homes are being constructed at an average value of $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 shows 61.0% higher new home approvals per person. Building activity has slowed in recent years, with 15.0% detached houses and 85.0% townhouses or apartments being constructed. This shift towards higher-density living creates more affordable entry points for downsizers, investors, and first-home buyers, marking a significant departure from the existing housing pattern of 56.0% houses. Clayton South indicates a mature market with around 480 people per approval. Future projections show Clayton South adding 5,513 residents by 2041, potentially leading to increased buyer competition and supporting price increases if current development rates do not match population growth.

Future projections show Clayton South adding 5,513 residents by 2041 (from the latest AreaSearch quarterly estimate). At current development rates, housing supply may struggle to match population growth, potentially heightening buyer competition and supporting price increases.

Clayton South has moderate levels of nearby infrastructure activity, ranking in the 40thth percentile nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified 28 projects likely affecting the area. Notable ones include Bluff Road Hampton East Housing Development, Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, and 1899-1901 Dandenong Road Mixed-Use Development. The following list details those 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 in Clayton South shows considerable strength compared to most other Australian regions

Clayton South has a highly educated workforce with strong representation in professional services. Its unemployment rate is 3.1%, lower than Greater Melbourne's 4.7%.

Employment growth over the past year was estimated at 4.3%. As of September 2025, 8,560 residents are employed, with an unemployment rate of 1.5% below Greater Melbourne's and workforce participation slightly below standard (60.9% vs Greater Melbourne's 64.1%). Employment is concentrated in health care & social assistance, manufacturing, and retail trade, with a particular strength in manufacturing at 1.5 times the regional level. Construction employment is lower than average at 7.1%.

Many residents commute elsewhere for work based on Census data. Between September 2024 and September 2025, employment increased by 4.3% while labour force grew by 4.9%, leading to a rise in unemployment of 0.5 percentage points. Greater Melbourne recorded lower growth rates over the same period. State-level data from November 2025 shows Victoria's employment grew by 1.13% year-on-year, with an unemployment rate of 4.7%. National forecasts from May-25 suggest total employment will increase by 6.6% over five years and 13.7% over ten years. Applying these projections to Clayton South's employment mix indicates local employment should grow by 6.3% over five years and 13.4% over ten years.

Income levels sit below national averages according to AreaSearch assessment

According to AreaSearch's aggregation of latest postcode level ATO data released for financial year ending June 2022, Clayton South SA2 had a median income among taxpayers of $48,722 and an average income of $56,716. Both figures are below the national averages of $54,892 and $73,761 respectively for Greater Melbourne. Based on Wage Price Index growth of 12.16% since financial year ending June 2022, estimated median income as of September 2025 would be approximately $54,647, with average income estimated at $63,613. According to the 2021 Census, household income ranks at the 43rd percentile ($1,630 weekly), while personal income sits at the 25th percentile. The predominant income cohort spans 34.5% of locals (5,297 people) in 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 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 72.1% houses and 28.0% other dwellings. Home ownership in Clayton South was 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 $1,800. The median weekly rent figure 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 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 30.2%, with lone person households at 21.9% and group households comprising 8.4%. The median household size is 2.7 people, 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: 39.1% of residents aged 15+ have 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% of qualifications among those aged 15+, 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% in secondary education.

Educational participation is notably 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

Public transport analysis shows 72 active transport stops operating within Clayton South. These include a mix of train and bus services. There are 15 individual routes serving these stops, collectively providing 4,579 weekly passenger trips.

Transport accessibility is rated excellent, with residents typically located 180 meters from the nearest stop. Service frequency averages 654 trips per day across all routes, equating to approximately 63 weekly trips per 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. Approximately 48% (~7,370 people) have private health cover, which is lower than the national average of 55.3%.

The most prevalent medical conditions are arthritis (5.7%) and asthma (5.3%). Around 77.4% of residents report no medical ailments, compared to 75.1% in Greater Melbourne. Clayton South has a smaller proportion of seniors aged 65 and over at 14.2% (2,175 people), compared to Greater Melbourne's 17.4%. Senior health outcomes align with the general population's 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 has a highly diverse population, with 70.4% speaking a language other than English at home and 65.5% born overseas. Christianity is the dominant religion in Clayton South, practiced by 39.3%. However, Buddhism is more prevalent here than in Greater Melbourne, comprising 10.6% compared to 15.2%.

The top three ancestral groups are Other (22.7%), Chinese (17.8%), and Indian (10.8%). Notably, Greeks make up 9.2%, Sri Lankans 1.5%, and Vietnamese 4.3%, all differing significantly from 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 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%. According to the 2021 Census, the proportion of Clayton South's population aged 25-34 has increased from 23.1% to 24.5%, while the proportion of residents aged 45-54 has decreased from 10.8% to 10.1%. By 2041, population forecasts indicate substantial demographic changes in Clayton South, with the strongest projected growth in the 25-34 age group, expected to increase by 24%, adding 905 residents and reaching a total of 4,669.