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, as of May 2026, is approximately 15,427. This figure represents a growth of 2,046 people since the 2021 Census, which reported a population of 13,381. The increase is inferred from ABS data showing an estimated resident population of 15,349 in June 2025 and an additional 299 validated new addresses since the Census date. This results in a population density ratio of 1,942 persons per square kilometer, higher than the average across national locations assessed by AreaSearch. Clayton South's growth rate of 15.3% since the 2021 census exceeds both the SA3 area (7.0%) and the state level, positioning it as a growth leader in the region. Overseas migration contributed approximately 90.4% of overall population gains during recent periods, driving this growth.

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 the VIC State Government's Regional/LGA projections from 2023, adjusted using 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. According to demographic trends, Clayton South is forecasted to experience significant population growth in the top quartile of national areas, with an expected increase of 5,078 persons by 2041 based on the latest annual ERP population numbers, reflecting a total increase of 32.4% over the 16-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 each year over the past five financial years, totalling 426 homes. As of FY-26, 28 approvals have been recorded. On average, 2.5 new residents are gained per year for each dwelling built between FY-21 and FY-25. The average construction cost value of new homes is $263,000, which is below the regional average.

This financial year has seen $29.8 million in commercial approvals. Compared to Greater Melbourne, Clayton South shows 63.0% higher new home approvals per person. New building activity comprises 15.0% detached houses and 85.0% townhouses or apartments, marking a shift from the current housing pattern of 56.0% houses. Clayton South indicates a mature market with around 480 people per approval. Future projections estimate an addition of 5,000 residents by 2041. At current development rates, housing supply may struggle to match population growth, potentially impacting buyer competition and supporting price increases.

Future projections show Clayton South adding 5,000 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 41stth percentile nationally

Twenty-five infrastructure projects have been identified by AreaSearch as potentially impacting the area. Notable ones 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 a highly educated workforce with strong representation in professional services. Its unemployment rate is 3.1%. Over the past year, estimated employment growth was 4.3%.

As of December 2025, 8,647 residents are employed, with an unemployment rate of 1.7% below Greater Melbourne's rate of 4.8%. Workforce participation in Clayton South is 67.3%, compared to Greater Melbourne's 69.9%. Moderate home-based work was reported by 23.3% of residents in Census responses, considering Covid-19 lockdown impacts. Employment concentration lies 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%. Many residents commute elsewhere for work based on Census data. Over the year to December 2025, employment increased by 4.3% while labour force grew by 4.6%, resulting in a slight unemployment rise of 0.3 percentage points. Greater Melbourne recorded similar unemployment changes but lower employment growth at 2.4%. National employment forecasts from May-25 project national growth rates of 6.6% over five years and 13.7% over ten years, with varying rates across industry sectors. 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, based on a simple weighting extrapolation for illustrative purposes.

Income levels sit below national averages according to AreaSearch assessment

According to AreaSearch's aggregation of ATO data released on 30 June 2023 for financial year 2023, Clayton South SA2 had a median taxpayer income of $51,376 and an average income of $59,705. These figures are below the national averages of $57,688 and $75,164 respectively in Greater Melbourne. Based on Wage Price Index growth from financial year 2023 to March 2026, estimated median income is approximately $56,318 and average income is around $65,449. The 2021 Census records household income at the 43rd percentile ($1,630 weekly) and personal income at the 25th percentile in Clayton South SA2. Income distribution shows that 34.5% of locals (5,322 people) fall into the $1,500 - 2,999 category, similar to the broader regional trend of 32.8%. Housing affordability is severe, with only 82.8% of income remaining after expenses, 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

The dwelling structure in Clayton South, as per the latest Census, consisted of 56.0% houses and 43.9% other dwellings (semi-detached, apartments, 'other' dwellings). In comparison, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Clayton South was 32.1%, similar to Melbourne metro, with the rest being mortgaged (27.4%) or rented (40.6%). The median monthly mortgage repayment in Clayton South was $1,997, below Melbourne metro's average of $2,000. The median weekly rent figure in Clayton South 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 comprise 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 is notably higher than broader averages. Among residents aged 15+, 39.1% hold university qualifications, surpassing the SA3 area average of 26.7% and the SA4 region average of 29.8%. Bachelor degrees are the 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

Public transport analysis shows 72 active transport stops operating in Clayton South, consisting of buses. These stops are served by 16 individual routes, collectively providing 3,682 weekly passenger trips. Transport accessibility is rated excellent, with residents typically located 180 meters from the nearest stop. Most residents commute outward due to its residential nature. Car remains the dominant mode at 78%, while train accounts for 14%. Vehicle ownership averages 1.2 per dwelling.

According to the 2021 Census, some 23.3% of residents work from home, possibly reflecting COVID-19 conditions. Service frequency averages 526 trips per day across all routes, equating to approximately 51 weekly trips per 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 assessment. Mortality rates and chronic condition prevalence in younger cohorts are very low. Approximately 49% of Clayton South's total population (~7,543 people) has private health cover, compared to Greater Melbourne's 56.7%.

Nationally, the average is 55.7%. The most prevalent medical conditions are arthritis and asthma, affecting 5.7% and 5.3% of residents respectively. 77.4% of residents declare no medical ailments, compared to Greater Melbourne's 72.6%. As of 14th March 2022, 14.3% of Clayton South's residents are aged 65 and over (2,213 people). Senior health outcomes are strong but rank lower nationally than 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, and 65.5% were born overseas. Christianity is the main religion in Clayton South, with 39.3%. Buddhism comprises 10.6%, higher than Greater Melbourne's average of 4.2%.

The top three ancestry groups are Other (22.7%), Chinese (17.8%), and Indian (10.8%), each substantially higher than regional averages. Notably, Greek (9.2%) Sri Lankan (1.5%) and Vietnamese (4.3%) ethnicities are overrepresented compared to regional figures.

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. 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 14.6%. Between the 2021 Census and the present, the proportion of 25 to 34-year-olds has increased from 23.1% to 24.5%, while the proportion of 45 to 54-year-olds has decreased from 10.8% to 10.0%. By 2041, population forecasts indicate that Clayton South's 25 to 34 age group is projected to grow by 23%, adding 879 residents to reach a total of 4,664.