Phillip Island

Phillip Island lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

Phillip Island's population is approximately 14,942 as of May 2026. This figure represents an increase of 1,143 people since the 2021 Census, which recorded a population of 13,799. The growth is inferred from ABS' estimated resident population of 14,797 in June 2025 and validated new addresses totalling 714 since the Census date. This results in a population density ratio of 148 persons per square kilometer. Phillip Island's 8.3% population growth since the 2021 census exceeds that of Rest of Vic (4.3%) and the SA4 region, indicating it as a growth leader in the area. Interstate migration contributed approximately 78.8% to 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, they utilise VIC State Government's Regional/LGA projections from 2023 with adjustments made through 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. By 2041, Phillip Island is expected to have a population of approximately 22,337, reflecting an increase of 7,395 persons and 48.5% in total over the 16-year period.

The level of residential development activity in Phillip Island was found to be higher than 90% of real estate markets across the country

Phillip Island has seen approximately 213 new homes approved annually. Between financial years FY-21 and FY-25, 1,066 homes were approved, with a further 51 approved in FY-26 to date. On average, 1.9 people moved to the area per dwelling built over these five years, indicating balanced supply and demand. However, this ratio has moderated to 1.1 people per dwelling over the past two financial years, suggesting an improved balance.

The average construction value of development projects is $317,000. This year, $24.3 million in commercial development approvals have been recorded, indicating moderate levels of commercial development activity. Compared to the rest of Victoria, Phillip Island shows moderately higher development activity, with 35.0% above the regional average per person over the past five years. This maintains good buyer choice while supporting existing property values, reflecting strong developer confidence in the area. New developments consist of 56.0% detached dwellings and 44.0% attached dwellings, expanding medium-density options to cater to a range of price brackets.

This marks a significant change from the current housing mix, which is predominantly houses (89.0%). Phillip Island has characteristics of a growth area, with around 101 people expected per dwelling approval. According to the latest AreaSearch quarterly estimate, the island is projected to grow by 7,248 residents through to 2041. Development appears to be keeping pace with this projected growth, but buyers may face increasing competition as the population expands.

Phillip Island has emerging levels of nearby infrastructure activity, ranking in the 32ndth percentile nationally

The performance of an area is significantly influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified 17 such projects that are likely to impact the area. Notable projects include Samuel Property Warley Avenue Apartments, Lifestyle Communities Phillip Island, Cowes to Ventnor Shared Path, and Phillip Island Recreation Reserve Master Plan. The following list details those projects most likely to be relevant.

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

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The labour market in Phillip Island shows considerable strength compared to most other Australian regions

Phillip Island has a skilled workforce with notable representation in lifestyle and retail sectors. Its unemployment rate was 2.8% as of December 2025, lower than Regional Vic.'s 3.7%. Employment growth over the past year was estimated at 6.2%.

There were 6,626 residents employed by December 2025 with a workforce participation rate of 53.7%, compared to Regional Vic.'s 61.0%. Approximately 23.1% of residents worked from home according to Census responses, potentially influenced by Covid-19 lockdown impacts. Dominant employment sectors include construction, health care & social assistance, and accommodation & food. The area has a particularly high concentration in accommodation & food, with employment levels at 1.7 times the regional average.

Agriculture, forestry & fishing has limited presence, with only 2.2% of employment compared to 7.5% regionally. The area may offer limited local employment opportunities as indicated by Census data comparing working population to resident population. Between December 2024 and December 2025, employment levels increased by 6.2%, labour force increased by 5.4%, and unemployment rate fell by 0.7 percentage points. In contrast, Regional Vic.'s employment decreased by 0.6%, labour force contracted by 0.7%, and unemployment fell by 0.1 percentage points during the same period. Jobs and Skills Australia's national employment forecasts from May-25 project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Phillip Island's employment mix suggests local employment should increase by approximately 6.4% over five years and 13.2% over ten years, though this is a simplified extrapolation for illustrative purposes.

Income metrics place the area in the bottom 10% of locations nationally according to AreaSearch analysis

Phillip Island SA2 had a median taxpayer income of $44,012 and an average of $58,296 in the latest postcode level ATO data aggregated by AreaSearch for financial year 2023. This is lower than national averages, with Regional Vic.'s median income being $50,954 and average income $62,728. Based on Wage Price Index growth of 9.62% since financial year 2023, estimated incomes as of March 2026 would be approximately $48,246 (median) and $63,904 (average). The 2021 Census shows household, family and personal incomes in Phillip Island between the 11th and 17th percentiles nationally. Income distribution data indicates that 27.7% of locals (4,138 people) fall into the $800 - 1,499 category, contrasting with surrounding regions where the $1,500 - 2,999 bracket is dominant at 30.3%. Housing affordability pressures are severe, with only 84.9% of income remaining, ranking at the 13th percentile nationally. The area's SEIFA income ranking places it in the 4th decile.

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

The dwelling structure in Phillip Island, as per the latest Census, consisted of 89.1% houses and 11.0% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Regional Vic.'s 89.7% houses and 10.3% other dwellings. Home ownership in Phillip Island stood at 47.8%, with mortgaged dwellings at 29.2% and rented ones at 22.9%. The median monthly mortgage repayment was $1,517, higher than Regional Vic.'s average of $1,430. The median weekly rent in Phillip Island was $330, compared to Regional Vic.'s $285. Nationally, Phillip Island's mortgage repayments were lower at $1,517 versus the Australian average of $1,863, and rents were also lower at $330 compared to the national figure of $375.

Phillip Island features high concentrations of lone person households, with a lower-than-average median household size

Family households constitute 65.3% of all households, including 20.7% couples with children, 34.3% couples without children, and 9.6% single parent families. Non-family households comprise the remaining 34.7%, with lone person households at 32.2% and group households making up 2.6%. The median household size is 2.2 people, smaller than the Regional Vic. average of 2.4.

The educational profile of Phillip Island exceeds national averages, with above-average qualification levels and academic performance metrics

Phillip Island's educational qualifications trail regional benchmarks. 23.5% of residents aged 15+ hold university degrees, compared to Victoria's 33.4%. Bachelor degrees are most common at 15.7%, followed by postgraduate qualifications (4.2%) and graduate diplomas (3.6%). Trade and technical skills are prominent, with 41.2% of residents aged 15+ holding vocational credentials - advanced diplomas (13.5%) and certificates (27.7%).

Educational participation is high at 26.5%, including primary education (10.1%), secondary education (7.6%), and tertiary education (3.0%).

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

Phillip Island has 54 active public transport stops. These are served by three routes offering a total of 156 weekly passenger trips. Transport accessibility is moderate with residents located an average of 423 meters from the nearest stop. Most residents commute outward daily. Car remains the primary mode of transport at 91%, while 5% walk. Vehicle ownership averages 1.3 per dwelling, lower than the regional average.

According to the 2021 Census, 23.1% of residents work from home, which may reflect COVID-19 conditions. Service frequency averages 22 trips per day across all routes, resulting in approximately two weekly trips per individual stop.

Health performance in Phillip Island is lower than average with common health conditions somewhat prevalent across both younger and older age cohorts

Phillip Island faces significant health challenges, as assessed by AreaSearch's analysis of mortality rates and chronic condition prevalence. Common health conditions are somewhat prevalent across both younger and older age cohorts. The rate of private health cover is very low at approximately 48% of the total population (~7,202 people), compared to 50.5% across Regional Vic., and the national average of 55.7%.

The most common medical conditions are arthritis and mental health issues, affecting 11.5% and 8.8% of residents respectively, while 61.5% claim to be completely clear of medical ailments, compared to 63.4% across Regional Vic.. Working-age residents exhibit a higher prevalence of chronic health conditions than the general population. The area has 31.7% of residents aged 65 and over (4,742 people), which is higher than the 23.9% in Regional Vic., with national rankings even higher than the general population.

Phillip Island ranks below the Australian average when compared to other local markets across a number of language and cultural background related metrics

Phillip Island's cultural diversity was found to be below average, with 87.2% of its population being Australian citizens and 81.3% born in Australia. English is spoken exclusively at home by 93.4% of the population. Christianity is the predominant religion on Phillip Island, comprising 42.4% of the population.

However, Judaism is overrepresented compared to Regional Vic., with 0.1% of Phillip Island's population identifying as Jewish. The top three ancestry groups are English at 32.2%, Australian at 27.8%, and Irish at 9.6%. Notably, Dutch ancestry is overrepresented on Phillip Island at 2.0%, compared to 1.7% regionally. Scottish ancestry also shows a slight overrepresentation at 9.1%, versus 8.8% regionally, as does Welsh ancestry at 0.7%, compared to 0.4%.

Phillip Island ranks among the oldest 10% of areas nationwide

The median age in Phillip Island is 52 years, significantly higher than Regional Vic.'s average of 43 and well above the national norm of 38. The 65-74 cohort is notably over-represented on Phillip Island at 19.2%, compared to Regional Vic.'s average, while those aged 25-34 are under-represented at 7.9%. This concentration in the 65-74 age group is well above the national figure of 9.4%. Between 2021 and present, the 75-84 age group has grown from 8.5% to 10.0%, while those aged 15-24 increased from 7.5% to 8.9%. Conversely, the 55-64 cohort has declined from 17.3% to 15.5%, and the 45-54 group dropped from 11.9% to 10.6%. Population forecasts for 2041 indicate substantial demographic changes for Phillip Island, with the 65-74 cohort projected to grow by 36%, adding 1,042 residents to reach a total of 3,913.