Colac Surrounds

An assessment of population growth drivers in Colac Surrounds reveals an overall ranking slightly below national averages considering recent, and medium term trends

Colac Surrounds' population, as of Feb 2026, is approximately 5,949. This figure represents an increase of 280 people since the 2021 Census, which reported a population of 5,669. The change was inferred from ABS's estimated resident population of 5,704 in June 2024 and an additional 40 validated new addresses since the Census date. This results in a population density ratio of 3.1 persons per square kilometer. Colac Surrounds' growth rate of 4.9% since the 2021 census exceeded both its SA3 area (3.1%) and SA4 region, positioning it as a growth leader in the region. Natural growth contributed approximately 76.1% of overall population gains during recent periods.

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 VIC State Government's Regional/LGA projections released in 2023, adjusted using weighted aggregation from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future population dynamics anticipate lower quartile growth for regional areas nationwide, with Colac Surrounds expected to increase by 85 persons to 2041 based on the latest annual ERP population numbers, reflecting a reduction of 2.7% in total over the 17 years.

Residential development activity is lower than average in Colac Surrounds according to AreaSearch's national comparison of local real estate markets

Colac Surrounds has averaged approximately 22 new dwelling approvals annually. Over the past five financial years, from FY-21 to FY-25, a total of 112 homes were approved, with an additional 13 approved so far in FY-26. On average, each new dwelling constructed over these five years has resulted in approximately 1.6 new residents per year.

This balance between supply and demand suggests stable market conditions. The average construction cost value of new homes being built is $346,000. In terms of commercial development, $4.1 million in approvals have been recorded this financial year.

Compared to the Rest of Vic., Colac Surrounds has around three-quarters the rate of new dwelling approvals per person and ranks among the 51st percentile nationally when assessed by areas. Recent development has consisted entirely of detached dwellings, maintaining the area's traditional low density character with a focus on family homes. The location currently has approximately 317 people per dwelling approval, indicating a low density market. Given stable or declining population projections, housing demand pressures in Colac Surrounds are expected to remain relatively low, benefiting potential buyers.

Colac Surrounds has limited levels of nearby infrastructure activity, ranking in the 0thth percentile nationally

Area infrastructure significantly impacts local performance. Nine projects may affect this area, led by AreaSearch. Notable ones are Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Colac Plaza. The following details those most relevant.

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

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Employment conditions in Colac Surrounds demonstrate exceptional strength compared to most Australian markets

Colac Surrounds has a skilled workforce with diverse sector representation and an unemployment rate of 1.4% as of September 2025. There are 3,104 residents in work, with the unemployment rate being 2.4% below Rest of Vic.'s rate of 3.8%. The workforce participation is 67.1%, compared to Rest of Vic.'s 61.4%.

According to Census responses, 22.1% of residents work from home. Employment is concentrated in agriculture, forestry & fishing (3.4 times the regional average), health care & social assistance (13.1%), and manufacturing. Over the year to September 2025, labour force levels decreased by 3.0%, with employment declining by 3.2% causing a rise in unemployment rate of 0.2 percentage points. National employment forecasts from Jobs and Skills Australia suggest Colac Surrounds' employment should increase by 5.2% over five years and 11.7% over ten years, based on industry-specific projections applied to the local employment mix.

Based on AreaSearch analysis of SALM and ABS data, over the 12 months to September 2025, labour force levels decreased by 3.0% alongside a 3.2% employment decline, causing the unemployment rate to rise by 0.2 percentage points. In contrast, Rest of Vic. experienced employment decline of 0.7% and labour force decline of 0.6%, with a marginal rise. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Colac Surrounds. These projections, covering five and ten-year periods, have been mapped against the local employment profile to estimate growth patterns. While national employment is forecast to expand by 6.6% over five years and 13.7% over ten years, growth rates differ significantly between industry sectors. Applying these industry-specific projections to Colac Surrounds's employment mix suggests local employment should increase by 5.2% over five years and 11.7% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

Income figures position the area below 75% of locations analysed nationally by AreaSearch

The Colac Surrounds SA2 had an income level below the national average according to the latest ATO data aggregated by AreaSearch for financial year 2023. The median income among taxpayers was $47,102 and the average income stood at $57,527, which compared to figures for Rest of Vic.'s median of $50,954 and average of $62,728 respectively. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates would be approximately $50,988 (median) and $62,273 (average) as of September 2025. According to 2021 Census figures, household, family and personal incomes all ranked modestly in Colac Surrounds, between the 32nd and 34th percentiles. Income brackets indicated that 33.2% of the population (1,975 individuals) fell within the $1,500 - 2,999 income range, aligning with the broader area where this cohort likewise represented 30.3%. Housing costs were manageable with 89.2% retained, though disposable income sat below average at the 38th percentile and the area's SEIFA income ranking placed it in the 5th decile.

Colac Surrounds is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

In Colac Surrounds, as per the latest Census evaluation, 99.6% of dwellings were houses with only 0.3% comprising semi-detached homes, apartments, and other types. This contrasts with Non-Metro Vic.'s figures of 90.1% houses and 9.9% other dwellings. Home ownership in Colac Surrounds stood at 48.7%, with mortgaged properties at 38.4% and rented ones at 12.8%. The median monthly mortgage repayment was $1,400, lower than Non-Metro Vic.'s average of $1,430. The median weekly rent in Colac Surrounds was $250, compared to Non-Metro Vic.'s $285. Nationally, mortgage repayments were significantly lower at $1,863 and rents substantially below the national figure of $375.

Colac Surrounds has a typical household mix, with a higher-than-average median household size

Family households account for 72.2% of all households, including 30.1% couples with children, 34.2% couples without children, and 7.2% single parent families. Non-family households constitute the remaining 27.8%, with lone person households at 25.8% and group households comprising 1.8%. The median household size is 2.5 people, larger than the Rest of Vic. average of 2.4.

Colac Surrounds shows below-average educational performance compared to national benchmarks, though pockets of achievement exist

The area's university qualification rate is 18.8%, significantly lower than Victoria's average of 33.4%. Bachelor degrees are the most common at 13.0%, followed by postgraduate qualifications (3.0%) and graduate diplomas (2.8%). Vocational credentials are held by 41.8% of residents aged 15 and above, with advanced diplomas at 11.4% and certificates at 30.4%. Educational participation is high, with 28.8% of residents currently enrolled in formal education.

This includes 11.1% in primary education, 8.3% in secondary education, and 2.9% pursuing tertiary education.

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

Colac Surrounds operates 18 active public transport stops offering a mix of train services. These stops are served by four routes providing a total of 82 weekly passenger trips. Transport accessibility is limited with residents located an average of 4251 meters from the nearest stop. The area is predominantly residential, with most commuters traveling outward. Car remains the primary mode of transport at 90%, while walking accounts for 7%. Vehicle ownership averages 2.1 per dwelling, above the regional average.

According to the 2021 Census, 22.1% of residents work from home, which may be influenced by COVID-19 conditions. Service frequency averages 11 trips per day across all routes, resulting in approximately four weekly trips per individual stop.

The level of general health in Colac Surrounds is notably higher than the national average with both young and old age cohorts seeing low prevalence of common health conditions

Colac Surrounds shows superior health outcomes, as assessed by AreaSearch using mortality rates and chronic condition prevalence. Both young and elderly cohorts exhibit low prevalence of common health conditions. Private health cover is quite low at approximately 48% (around 2,831 people), compared to 50.5% in Rest of Vic., and the national average of 55.7%.

The most prevalent medical conditions are arthritis (affecting 8.9%) and asthma (7.8%), while 68.8% report being completely free from medical ailments, higher than Rest of Vic.'s 63.4%. Health outcomes among working-age residents are generally typical. The area has a lower proportion of seniors aged 65 and over at 20.3% (1,206 people), compared to Rest of Vic.'s 23.9%. Senior health outcomes rank particularly high nationally.

The latest Census data sees Colac Surrounds placing among the least culturally diverse areas in the country when compared across a range of language and cultural background related metrics

Colac Surrounds was found to have low cultural diversity, with 90.4% of its population being Australian citizens, born in Australia (92.3%), and speaking English only at home (98.0%). The predominant religion is Christianity, practiced by 50.5% of the population, compared to 47.3% across Rest of Vic.. The top three ancestry groups are Australian (33.3%), English (31.9%), and Irish (12.1%).

Notably, Scottish ancestry is overrepresented at 10.6%, compared to 8.8% regionally, while Dutch (1.3%) and French (0.4%) ancestries are underrepresented compared to regional averages of 1.7% and 0.3%, respectively.

Colac Surrounds hosts a notably older demographic compared to the national average

Colac Surrounds' median age of 44 years is similar to Rest of Vic.'s 43 and above the national average of 38 years. Compared to Rest of Vic., Colac Surrounds has a higher proportion of residents aged 55-64 (14.7%) but fewer residents aged 85+ (1.1%). Between the 2016 and 2021 censuses, the population aged 35-44 grew from 11.6% to 13.3%, while those aged 75-84 increased from 5.3% to 6.7%. Conversely, the proportion of residents aged 65-74 declined from 14.3% to 12.5%, and those aged 45-54 dropped from 13.3% to 11.8%. By 2041, Colac Surrounds is projected to experience significant changes in its age composition, with the 25-34 group expected to grow by 20%, reaching 753 people from 627, while the 85+ and 75-84 cohorts are anticipated to decrease.