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

Based on AreaSearch's analysis, Colac Surrounds's population is around 5,949 as of Feb 2026. This reflects an increase of 280 people (4.9%) since the 2021 Census, which reported a population of 5,669 people. The change is inferred from the estimated resident population of 5,704 from the ABS as of June 2024 and an additional 40 validated new addresses since the Census date. This population level equates to a density ratio of 3.1 persons per square kilometer, providing ample space per person. Colac Surrounds's 4.9% growth since the 2021 census exceeded the SA3 area (3.1%) and the SA4 region, marking it as a growth leader in the region. Population growth for the area was primarily driven by natural growth, which contributed approximately 76.1% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising 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 from these aggregations are also applied across all areas for years 2032 to 2041. Anticipating future population dynamics, lower quartile growth of regional areas across the nation is anticipated, with the area expected to increase by 85 persons by 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 around 22 new dwelling approvals annually, with 112 homes approved over the past 5 financial years (between FY-21 and FY-25) and 15 so far in FY-26. Given an average of 1.6 new residents per year per dwelling constructed over the past 5 financial years (between FY-21 and FY-25), supply and demand appear well-balanced, creating stable market conditions, while new homes are being built at an average value of $346,000. Additionally, $4.1 million in commercial development approvals have been recorded this financial year, supporting the area's residential character.

Compared to the rest of Victoria, Colac Surrounds has around three-quarters the rate of new dwelling approvals per person and ranks in the 51st percentile of areas assessed nationally. Meanwhile, recent development has been entirely comprised of detached dwellings, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. The location has approximately 317 people per dwelling approval, indicating a low density market.

With population projections showing stability or decline, Colac Surrounds should see reduced housing demand pressures, benefiting potential buyers.

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

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total, 9 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Colac Plaza, with the list below detailing those likely to be of most relevance.

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.

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 just 1.3%. As of December 2025, 3,043 residents are in work, while the unemployment rate is 2.4% below Regional Vic.'s rate of 3.7%, and workforce participation is fairly standard (65.8% compared to Regional Vic.'s 61.5%). Based on Census responses, a moderate 22.1% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

Employment among residents is concentrated in agriculture, forestry & fishing, health care & social assistance, and manufacturing. The area demonstrates a particularly notable concentration in agriculture, forestry & fishing, with employment levels at 3.4 times the regional average. Meanwhile, health care & social assistance has a limited presence with 13.1% employment compared to 16.8% regionally. The area appears to offer limited employment opportunities locally, as indicated by the count of the Census working population versus the resident population.

Based on AreaSearch analysis of SALM and ABS data, over the 12 months to December 2025, labour force levels decreased by 6.5% alongside a 6.6% employment decline, keeping the unemployment rate relatively stable. In contrast, Regional Vic. experienced an employment decline of 0.6% and a labour force decline of 0.7%, with a 0.1 percentage point drop. 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's income level is below the national average according to the latest ATO data aggregated by AreaSearch for FY-23. The Colac Surrounds SA2's median income among taxpayers is $47,102 and the average income stands at $57,527, which compares to figures for Regional Vic.'s of $50,954 and $62,728 respectively. Based on Wage Price Index growth of 8.25% since FY-23, 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 rank modestly in Colac Surrounds, between the 32nd and 34th percentiles. Income brackets indicate 33.2% of the population (1,975 individuals) fall within the $1,500 - 2,999 income range, aligning with the broader area where this cohort likewise represents 30.3%. Housing costs are manageable with 89.2% retained, though disposable income sits below average at the 38th percentile and the area's SEIFA income ranking places it in the 5th decile.

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

Dwelling structure within Colac Surrounds, as evaluated at the latest Census, comprised 99.6% houses and 0.3% other dwellings (semi-detached, apartments, 'other' dwellings), in comparison to Regional Vic.'s 90.1% houses and 9.9% other dwellings. Meanwhile, the level of home ownership within Colac Surrounds was well beyond that of Regional Vic., at 48.7%, with the remainder of dwellings either mortgaged (38.4%) or rented (12.8%). The median monthly mortgage repayment in the area was below the Regional Vic. average at $1,400, while the median weekly rent figure was recorded at $250, compared to Regional Vic.'s $1,430 and $285. Nationally, Colac Surrounds's mortgage repayments are significantly lower than the Australian average of $1,863, while rents are substantially below the national figure of $375.

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

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

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

The area faces educational challenges, with university qualification rates (18.8%) substantially below the VIC average of 33.4%. This represents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees lead at 13.0%, followed by postgraduate qualifications (3.0%) and graduate diplomas (2.8%). Trade and technical skills feature prominently, with 41.8% of residents aged 15+ holding vocational credentials, including advanced diplomas (11.4%) and certificates (30.4%).

Educational participation is notably 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

Public transport analysis reveals 18 active transport stops operating within Colac Surrounds, comprising a mix of train services. These stops are serviced by 4 individual routes, collectively providing 82 weekly passenger trips. Transport accessibility is rated as limited, with residents typically located 4251 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 90%, with 7% walking. Vehicle ownership averages 2.1 per dwelling, which is above the regional average. Some 22.1% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 11 trips per day across all routes, equating to approximately 4 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 demonstrates above-average health outcomes, based on AreaSearch's assessment of mortality rates and chronic condition prevalence. Both young and old age cohorts see a low prevalence of common health conditions, and the rate of private health cover is very low at approximately 48% of the total population (~2,831 people). This compares to 50.5% across Regional Vic. The national average is 55.7%.

The most common medical conditions in the area are arthritis and asthma, impacting 8.9% and 7.8% of residents, respectively, while 68.8% declared themselves as completely clear of medical ailments compared to 63.4% across Regional Vic. Health outcomes among the working-age population are broadly typical. The area has 20.3% of residents aged 65 and over (1,206 people), which is lower than the 23.9% in Regional Vic. Health outcomes among seniors are particularly strong, with national rankings even higher than the general population.

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 be below average in terms of cultural diversity, with 90.4% of its population being citizens, 92.3% born in Australia, and 98.0% speaking English only at home. The main religion in Colac Surrounds is Christianity, which makes up 50.5% of the population. This compares to 47.3% across Regional Vic..

In terms of ancestry (country of birth of parents), the top three represented groups in Colac Surrounds are Australian, comprising 33.3% of the population, English, comprising 31.9% of the population, and Irish, comprising 12.1% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Scottish is notably overrepresented at 10.6% of Colac Surrounds (vs 8.8% regionally), Dutch at 1.3% (vs 1.7%) and French at 0.4% (vs 0.3%).

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

Colac Surrounds's median age of 44 years is similar to Regional Vic.'s 43 and well above the 38-year national average. Relative to Regional Vic., Colac Surrounds has a higher concentration of 55 - 64 residents (14.7%) but fewer 85+ year-olds (1.1%). Since the 2021 Census, the 35 to 44 age group has grown from 11.6% to 13.3% of the population, while the 75 to 84 cohort increased from 5.3% to 6.7%. Conversely, the 65 to 74 cohort has declined from 14.3% to 12.5% and the 45 to 54 group dropped from 13.3% to 11.8%. By 2041, Colac Surrounds is expected to see notable shifts in its age composition. Leading the demographic shift, the 25 to 34 group will grow by 20% (125 people), reaching 753 from 627. On the other hand, the 85+ and 75 to 84 cohorts are expected to experience population declines.