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 November 2025, is approximately 5,909, indicating a growth of 240 people since the 2021 Census. This increase represents a 4.2% rise from the previous figure of 5,669. The change can be attributed to an estimated resident population of 5,714 in June 2024 and the addition of 36 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 4.2% between 2021 and 2025 exceeded both its SA3 area (2.0%) and SA4 region, positioning it as a regional growth leader during this period. Natural growth contributed approximately 76.1% of the overall population gains recently.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by these data, AreaSearch employs VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for the years 2032 to 2041. Future population trends anticipate a lower quartile growth in regional areas nationwide, with Colac Surrounds expected to increase by 85 persons by 2041 based on the latest annual ERP population numbers, reflecting an overall reduction of 2.0% over the 17-year period.

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

Colac Surrounds averaged approximately 22 new dwelling approvals annually over the past five financial years from FY-21 to FY-25, with a total of 112 homes approved during this period. In FY-26 up to present, 10 dwellings have been approved. On average, each dwelling constructed has resulted in approximately 1.6 new residents annually over the past five financial years.

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

Compared to the Rest of Vic., Colac Surrounds has about three-quarters the rate of new dwelling approvals per person. Nationally, it ranks among the 51st percentile of areas assessed for new dwelling approvals. All recent development in the area has consisted of detached dwellings, maintaining its traditional low-density character and appealing to families seeking space. The location currently has approximately 317 people per dwelling approval, indicating a low density market. Population projections suggest stability or decline, which should reduce housing demand pressures in Colac Surrounds, benefiting potential buyers.

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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified nine projects likely to impact the area. Notable projects are Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Colac Plaza. 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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Employment conditions in Colac Surrounds demonstrate exceptional strength compared to most Australian markets

Colac Surrounds has a skilled workforce with diverse sector representation, an unemployment rate of 1.4% as of September 2025. There are 3,104 residents in work, with the unemployment rate being 2.4% lower than Rest of Vic.'s rate of 3.8%.

Workforce participation is high at 64.6%, compared to Rest of Vic.'s 57.4%. Employment is concentrated in agriculture, forestry & fishing, health care & social assistance, and manufacturing. Agriculture, forestry & fishing has notable concentration with employment levels at 3.4 times the regional average. Health care & social assistance has limited presence at 13.1% compared to the regional average of 16.8%.

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 an employment decline of 0.7% and a labour force decline of 0.6%. State-level data as of 25-Nov shows VIC employment grew by 1.13% year-on-year, with the state unemployment rate at 4.7%, compared to the national rate of 4.3%. Jobs and Skills Australia's national employment forecasts from May-25 suggest local employment should increase by 5.2% over five years and 11.7% over ten years, based on industry-specific projections applied to Colac Surrounds' employment mix.

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

The median income among taxpayers in Colac Surrounds SA2 was $46,397 in financial year 2022. The average income stood at $55,956 during the same period. These figures are lower than those for Rest of Vic., which had median and average incomes of $48,741 and $60,693 respectively. By September 2025, based on a 12.16% growth in wages since financial year 2022, the estimated median income would be approximately $52,039, and the average income would be around $62,760. According to the 2021 Census, incomes in Colac Surrounds rank modestly, between the 32nd and 34th percentiles for household, family, and personal incomes. In this area, 33.2% of individuals (equivalent to 1,961 people) fall within the $1,500 - $2,999 income bracket, which is similar to the broader area where this cohort represents 30.3%. Housing costs are manageable with 89.2% retained, but disposable income ranks below average at the 38th percentile. The SEIFA income ranking places Colac Surrounds in the 5th decile.

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

The dwelling structure in Colac Surrounds, as per the latest Census, consisted of 99.6% houses and 0.3% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Non-Metro Vic.'s figures of 93.2% houses and 6.8% other dwellings. Home ownership in Colac Surrounds was at 48.7%, with mortgaged properties at 38.4% and rented dwellings at 12.8%. The median monthly mortgage repayment in the area was $1,400, higher than Non-Metro Vic.'s average of $1,300. The median weekly rent figure stood at $250, matching Non-Metro Vic.'s figure. Nationally, Colac Surrounds's median monthly mortgage repayment is lower than the Australian average of $1,863, and its median weekly rent is substantially below the national figure of $375.

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

Family households constitute 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 comprise the remaining 27.8%, with lone person households at 25.8% and group households making up 1.8%. The median household size is 2.5 people, which is larger than the Rest of Vic. average of 2.3.

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 prevalent, with 41.8% of residents aged 15+ holding such qualifications - 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 has 18 active public transport stops, offering a mix of train and bus services. These are served by 8 different routes that together facilitate 139 weekly passenger trips. Transport accessibility is considered limited, with residents generally situated 4251 meters away from the nearest stop.

On average, there are 19 trips per day across all routes, translating to roughly 7 weekly trips per individual stop.

Colac Surrounds's residents are healthier than average in comparison to broader Australia with a fairly standard level of common health conditions seen across both young and old age cohorts

Health data for Colac Surrounds shows its residents have a relatively positive health status, with common conditions seen across both younger and older age groups being fairly standard. Approximately 48% (~2,836 people) of the total population has private health cover, which is lower than the national average of 55.3%.

The most prevalent medical conditions are arthritis (affecting 8.9% of residents) and asthma (7.8%), while 68.8% report having no medical ailments, compared to 65.0% in Rest of Vic.. As of 2016 data, 20.7% of residents are aged 65 and over (1,223 people), lower than the 24.6% in Rest of Vic.. Despite this, health outcomes among seniors in Colac Surrounds perform better than the general population in health metrics.

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, as per the census conducted on 27 June 2016, showed low cultural diversity with 90.4% of its population being Australian citizens, 92.3% born in Australia, and 98.0% speaking English at home. Christianity was the dominant religion, comprising 50.5% of the population, compared to 50.0% across Victoria. The top three ancestry groups were Australian (33.3%), English (31.9%), and Irish (12.1%).

There were notable differences in the representation of Scottish (10.6%, vs regional 10.0%), Dutch (1.3%, vs 1.6%), and French (0.4%, vs 0.3%) ethnic groups.

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 years, both higher than the national average of 38 years. Compared to Rest of Vic., Colac Surrounds has a higher percentage of residents aged 55-64 (15.0%) but fewer residents aged 85+ (1.3%). Between the 2021 Census and the present, the population aged 15-24 increased from 10.2% to 11.6%, while those aged 75-84 rose from 5.3% to 6.6%. Conversely, the percentage of residents aged 65-74 decreased from 14.3% to 12.8%, and those aged 45-54 fell from 13.3% to 12.1%. By 2041, Colac Surrounds is projected to experience significant changes in its age composition. The 25-34 age group is expected to grow by 27%, reaching 753 people from the current 593. Meanwhile, the populations aged 85+ and 75-84 are projected to decline.