Highett (West) - Cheltenham

Highett (West) - Cheltenham lies within the top quartile of areas nationally for population growth performance according to AreaSearch analysis of recent, and medium to long-term trends

Highett (West) - Cheltenham's population was around 13,923 as of February 2026. This reflects an increase of 1,484 people since the 2021 Census, which reported a population of 12,439 people. The change is inferred from the estimated resident population of 13,098 in June 2024 and an additional 203 validated new addresses since the Census date. This level of population equates to a density ratio of 2,617 persons per square kilometer. Highett (West) - Cheltenham's growth rate exceeded both its SA4 region (8.7%) and SA3 area, marking it as a growth leader in the region. Overseas migration contributed approximately 75.2% of overall population gains during recent periods.

AreaSearch is using ABS/Geoscience Australia projections for each SA2 area released in 2024 with a base year of 2022. For areas not covered, they utilise VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing weighted aggregation from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future population trends forecast a significant increase in the top quartile of national statistical areas, with Highett (West) - Cheltenham expected to expand by 4,109 persons to 2041 based on the latest annual ERP population numbers, reflecting a gain of 23.6% over the 17 years.

AreaSearch assessment of residential development activity positions Highett (West) - Cheltenham among the top 25% of areas assessed nationwide

Highett West-Cheltenham has received approximately 153 dwelling approvals per year over the past five financial years, totalling 766 homes. As of FY26, there have been 15 approvals recorded. On average, about one person moves to the area annually for each dwelling built between FY21 and FY25. This suggests that supply is meeting or exceeding demand, offering greater buyer choice while supporting potential population growth above projections.

The average construction cost of new homes over this period was $496,000, indicating a focus on premium properties by developers. In FY26, approximately $11.8 million in commercial development approvals have been recorded, demonstrating moderate levels of commercial activity in the area. Compared to Greater Melbourne, Highett West-Cheltenham has experienced elevated construction levels, with 26.0% above the regional average per person over the past five years. This suggests robust developer interest in the area. New building activity shows that 15.0% are standalone homes and 85.0% are medium to high-density housing. This trend reflects reduced availability of development sites and addresses shifting lifestyle demands and affordability requirements, marking a significant change from the current housing mix (currently 62.0% houses).

With around 56 people moving in for each dwelling approval, Highett West-Cheltenham exhibits characteristics of a growth area. According to AreaSearch's latest quarterly estimate, the area is projected to add approximately 3,284 residents by 2041. With current construction levels, housing supply should adequately meet demand, creating favourable conditions for buyers while potentially enabling population growth that exceeds current forecasts.

Highett (West) - Cheltenham has strong levels of nearby infrastructure activity, ranking in the top 40% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified 28 projects likely affecting the region. Notable projects include Banksia Apartments Cheltenham, Highett Common, Highett Gasworks, and Sanctuary Sandringham. The following details projects expected to have the most relevance.

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Highett (West) - Cheltenham has seen below average employment performance when compared to national benchmarks

Highett West - Cheltenham has a highly educated workforce with strong representation in professional services. The unemployment rate was 4.7% as of September 2025, aligned with Greater Melbourne's rate. Workforce participation was also similar to the regional average at 71.0%.

According to Census responses, 45.7% of residents worked from home, possibly influenced by Covid-19 lockdowns. The leading employment industries were professional & technical, health care & social assistance, and education & training. Highett West - Cheltenham showed particular strength in professional & technical services, with an employment share 1.3 times the regional level. Conversely, transport, postal & warehousing had lower representation at 2.8% compared to the regional average of 5.2%.

While local employment opportunities exist, many residents commute elsewhere for work based on Census data. Over a 12-month period ending in September 2025, Highett West - Cheltenham's labour force increased by 0.7%, but employment declined by 0.2%, leading to an unemployment rate rise of 0.8 percentage points. In contrast, Greater Melbourne saw employment and labour force growth of 3.0% and 3.3% respectively, with a smaller increase in unemployment at 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 project overall employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Highett West - Cheltenham's employment mix suggests local employment should increase by 6.9% over five years and 13.9% over ten years, although these are simple extrapolations for illustrative purposes and do not account for localised population projections.

Income metrics indicate excellent economic conditions, with the area achieving higher performance than 75% of national locations assessed by AreaSearch

AreaSearch's data for financial year 2023 shows Highett (West) - Cheltenham SA2 had one of Australia's highest incomes. The median income was $66,892 and the average was $87,651. This compares to Melbourne's median income of $57,688 and average of $75,164. By September 2025, estimates suggest median income will be approximately $72,411 and average income $94,882, based on an 8.25% Wage Price Index growth since financial year 2023. The 2021 Census ranks Highett (West) - Cheltenham's incomes highly, between the 80th and 83rd percentiles nationally. Income distribution shows 27.3% of residents earn $1,500-$2,999 weekly (3,800 people), mirroring the broader area at 32.8%. Notably, 38.2% earn above $3,000 weekly. High housing costs consume 16.0% of income, but strong earnings place disposable income at the 81st percentile. The area's SEIFA income ranking is in the 9th decile.

Highett (West) - Cheltenham displays a diverse mix of dwelling types, with ownership patterns similar to the broader region

Highett (West) - Cheltenham's dwelling structure, as per the latest Census, had 61.7% houses and 38.3% other dwellings. In comparison, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Highett (West) - Cheltenham was 30.4%, with mortgaged dwellings at 42.3% and rented ones at 27.3%. The median monthly mortgage repayment was $2,500, higher than Melbourne metro's $2,000. Median weekly rent in Highett (West) - Cheltenham was $450, compared to Melbourne metro's $390. Nationally, Highett (West) - Cheltenham's mortgage repayments were significantly higher at $1,863 and rents substantially above the national figure of $375.

Highett (West) - Cheltenham has a typical household mix, with a lower-than-average median household size

Family households account for 71.9% of all households, including 36.9% couples with children, 22.6% couples without children, and 11.6% single parent families. Non-family households constitute the remaining 28.1%, with lone person households at 25.6% and group households comprising 2.6%. The median household size is 2.5 people, smaller than the Greater Melbourne average of 2.6.

Highett (West) - Cheltenham demonstrates exceptional educational outcomes, ranking among the top 5% of areas nationally based on AreaSearch's comprehensive analysis of qualification and performance metrics

Educational attainment in Highett (West) - Cheltenham shows significant surpassing of broader benchmarks, with 43.5% of residents aged 15+ holding university qualifications compared to 30.4% nationally and 33.4% statewide in Victoria as of the latest census data. Bachelor degrees are the most prevalent at 28.7%, followed by postgraduate qualifications at 10.3% and graduate diplomas at 4.5%. Trade and technical skills are also prominent, with 26.5% of residents aged 15+ holding vocational credentials - advanced diplomas at 12.4% and certificates at 14.1%. Educational participation is notably high, with 30.5% of residents currently enrolled in formal education, including 10.6% in primary education, 8.1% in secondary education, and 5.6% pursuing tertiary education as per the latest available statistics.

Educational participation is notably high, with 30.5% of residents currently enrolled in formal education. This includes 10.6% in primary education, 8.1% in secondary education, and 5.6% pursuing tertiary education.

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

Public transport analysis shows 79 active stops in Highett (West) - Cheltenham area, all serving buses. These stops are covered by 17 routes, together offering 3,162 weekly passenger trips. Transport accessibility is rated excellent with residents typically 157 meters from nearest stop. Most commute outward daily. Cars dominate at 81%, followed by train at 9%. Average vehicle ownership per dwelling is 1.2.

A high 45.7% work from home (2021 Census). Service frequency averages 451 trips daily, about 40 weekly trips per stop.

Highett (West) - Cheltenham'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

Highett (West) - Cheltenham residents have relatively positive health outcomes according to AreaSearch's analysis of mortality rates and health conditions, which aligns with national benchmarks. Common health conditions are seen across both young and old age cohorts at a fairly standard level. Private health cover is exceptionally high in the area, with approximately 63% of the total population (8,813 people) having it, compared to 56.7% across Greater Melbourne and 55.7% nationally.

The most common medical conditions are asthma and mental health issues, affecting 8.0 and 7.8% of residents respectively, while 71.8% declare themselves completely clear of medical ailments, compared to 72.6% in Greater Melbourne. Working-age residents have low chronic condition prevalence. The area has 16.4% of residents aged 65 and over (2,281 people), higher than the 15.1% in Greater Melbourne. Health outcomes among seniors are above average, with national rankings broadly in line with the general population.

The level of cultural diversity witnessed in Highett (West) - Cheltenham was found to be above average when compared nationally for a number of language and cultural background related metrics

Highett West-Cheltenham has a higher cultural diversity compared to most local areas, with 18.4% of residents speaking languages other than English at home and 28.8% born overseas. Christianity is the predominant religion in Highett West-Cheltenham, comprising 43.7%. Judaism, at 1.3%, is slightly higher than Greater Melbourne's average of 1.0%.

Regarding ancestry, the top groups are English (26.2%), Australian (22.7%), and Irish (9.0%). Notably, Russian (0.9%) Hungarian (0.5%), and Polish (1.1%) communities are more represented in Highett West-Cheltenham compared to regional averages of 0.4%, 0.3%, and 0.8% respectively.

Highett (West) - Cheltenham's population is slightly older than the national pattern

Highett (West) - Cheltenham has a median age of 40, which is slightly higher than Greater Melbourne's figure of 37 and Australia's average of 38 years. Compared to the Greater Melbourne average, Highett (West) - Cheltenham has an over-representation of the 45-54 age cohort, with 15.7% locally compared to the average, while the 25-34 age group is under-represented at 10.0%. Between 2021 and present, the 15-24 age group has increased from 10.9% to 12.6%, and the 55-64 cohort has grown from 10.7% to 12.2%. Conversely, the 5-14 age group has declined from 13.8% to 12.3%. By 2041, demographic modeling projects significant changes in Highett (West) - Cheltenham's age profile, with the 45-54 cohort expected to expand by 655 people (30%), growing from 2,190 to 2,846.