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 was around 15,946 as of November 2025, according to AreaSearch's analysis. This reflected an increase of 2,147 people since the 2021 Census, which reported a population of 13,799 people. The change was inferred from the estimated resident population of 14,560 from the ABS as of June 2024 and an additional 683 validated new addresses since the Census date. This level of population equated to a density ratio of 158 persons per square kilometer. Phillip Island's growth rate exceeded both the non-metro area (6.0%) and the SA4 region, marking it as a growth leader in the region. Population growth was primarily driven by interstate migration, contributing approximately 80.1% of overall population gains during recent periods.

AreaSearch adopted ABS/Geoscience Australia projections for each SA2 area, released in 2024 with 2022 as the base year. For areas not covered by this data, AreaSearch utilised VIC State Government's Regional/LGA projections released in 2023, adjusting them employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group were applied across all areas for years 2032 to 2041. Based on demographic trends and latest annual ERP population numbers, exceptional growth is predicted over the period with the area expected to expand by 7,901 persons to 2041, reflecting an increase of 40.8% in total over the 17 years.

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 FY-21 and FY-25, 1,066 homes were approved, with an additional 29 approved so far in FY-26. Over these five years, on average, 1.9 people moved to the area for each dwelling built. However, this has moderated to 1.1 people per dwelling over the past two financial years.

The average construction value of development projects is $317,000. This year, $24.3 million in commercial development approvals have been recorded. Compared to the rest of Victoria, Phillip Island shows moderately higher development activity, with 36.0% above the regional average per person over the five-year period. New development consists of 56.0% detached dwellings and 44.0% attached dwellings, offering a mix of housing options across price brackets. By 2041, Phillip Island is expected to grow by 6,498 residents, with current development well-matched to future needs.

Looking ahead, Phillip Island is expected to grow by 6,498 residents through to 2041 (from the latest AreaSearch quarterly estimate). Current development appears well-matched to future needs, supporting steady market conditions without extreme price pressure.

Phillip Island has emerging levels of nearby infrastructure activity, ranking in the 39thth percentile nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified 17 projects likely to impact the area. Key projects include Cowes to Ventnor Shared Path, Samuel Property Warley Avenue Apartments, Lifestyle Communities Phillip Island, and Phillip Island Recreation Reserve Master Plan. The following list details those most relevant.

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.

The employment environment in Phillip Island shows above-average strength when compared nationally

Phillip Island has a skilled workforce with notable representation in lifestyle and retail sectors. Its unemployment rate is 2.9%, with an estimated employment growth of 4.8% over the past year as of September 2025.

In this month, 6,577 residents were employed, which was 0.9% lower than Rest of Vic.'s unemployment rate of 3.8%. Workforce participation in Phillip Island lagged significantly at 48.9%, compared to Rest of Vic.'s 57.4%. The dominant employment sectors among residents include construction, health care & social assistance, and accommodation & food. Notably, the concentration in accommodation & food is high, with employment levels at 1.7 times the regional average.

However, agriculture, forestry & fishing has limited presence, with only 2.2% of employment compared to the regional average of 7.5%. The area appears to offer limited local employment opportunities, as indicated by the count of Census working population versus resident population. Between September 2024 and September 2025, employment levels increased by 4.8%, while the labour force increased by 4.2%, leading to a fall in unemployment rate by 0.6 percentage points. In contrast, Rest of Vic. saw employment fall by 0.7% and labour force contract by 0.6%, with a marginal rise in unemployment. State-level data from 25-Nov shows VIC employment grew by 1.13% year-on-year, adding 41,950 jobs, with the state unemployment rate at 4.7%. Nationally, the unemployment rate was 4.3%, and the state's employment growth outpaced the national average of 0.14%. Jobs and Skills Australia's national employment forecasts from May-25 suggest that 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 projections to Phillip Island's employment mix suggests local employment should increase by 6.4% over five years and 13.2% over ten years.

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 $40,603 and an average of $56,887 in the financial year 2022. This was lower than national averages, with Rest of Vic.'s median being $48,741 and average at $60,693. By September 2025, estimated incomes would be approximately $45,540 (median) and $63,804 (average), based on a 12.16% growth in wages since 2022. Census data from 2021 showed Phillip Island's household, family, and personal incomes fell between the 11th and 17th percentiles nationally. Income distribution indicated that 27.7% of locals (4,417 people) earned between $800 - 1,499 annually, contrasting with surrounding regions where earnings predominantly fell within the $1,500 - 2,999 bracket at 30.3%. Housing affordability was severe, with only 84.9% of income remaining after housing costs, ranking at the 13th percentile. The area's SEIFA income ranking placed it in the 4th decile.

Phillip Island is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

Phillip Island's dwelling structures, as per the latest Census, consisted of 89.1% houses and 11.0% other dwellings. In comparison, Non-Metro Vic.'s figures were 93.3% houses and 6.7% other dwellings. Home ownership in Phillip Island was 47.8%, similar to Non-Metro Vic., with mortgaged dwellings at 29.2% and rented ones at 22.9%. The median monthly mortgage repayment was $1,517, higher than Non-Metro Vic.'s average of $1,450. Weekly rent median was $330, compared to Non-Metro Vic.'s $295. Nationally, Phillip Island's mortgage repayments were lower at $1,863 and rents were substantially below the national figure of $375.

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

Family households account for 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 constitute the remaining 34.7%, with lone person households at 32.2% and group households comprising 2.6%. The median household size is 2.2 people, which is smaller than the Rest of Vic. average of 2.3.

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. Among residents aged 15 and above, 23.5% hold university degrees, compared to Victoria's 33.4%. This gap suggests potential for educational development and skill enhancement. Bachelor degrees are the most common (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 and above holding vocational credentials - advanced diplomas at 13.5% and certificates at 27.7%. Educational participation is high, with 26.5% currently enrolled in formal education. This includes 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, all of which are bus stops. These stops are served by five different routes that together offer 228 weekly passenger trips. The island's transport accessibility is rated as moderate, with residents on average located 423 meters from the nearest stop.

Across all routes, service frequency averages 32 trips per day, equating to roughly four weekly trips per individual stop.

Health performance in Phillip Island is well below average with prevalence of common health conditions notable across both younger and older age cohorts

Health data indicates significant challenges for Phillip Island, with high prevalence of common health conditions across both younger and older age groups. Private health cover stands at approximately 48% (7,701 people), lower than the national average of 55.3%.

The most prevalent medical conditions are arthritis (11.5%) and mental health issues (8.8%). A total of 61.5% of residents report no medical ailments, similar to the Rest of Vic.'s 61.6%. Phillip Island has a higher proportion of residents aged 65 and over at 30.6% (4,879 people), compared to Rest of Vic.'s 28.6%, performing better in health metrics 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. Its population comprised 87.2% citizens, with 81.3% born in Australia and 93.4% speaking English only at home. Christianity was the dominant religion, accounting for 42.4%.

Judaism, however, was slightly overrepresented at 0.1%, compared to 0.1% across the rest of Victoria. The top three ancestry groups were English (32.2%), Australian (27.8%), and Irish (9.6%). Notably, Dutch (2.0%) and Scottish (9.1%) were slightly overrepresented compared to regional averages of 2.5% and 9.3%, respectively. Welsh representation at 0.7% was also higher than the regional average of 0.5%.

Phillip Island ranks among the oldest 10% of areas nationwide

The median age in Phillip Island is 52 years, which is significantly higher than the average of 43 years for the Rest of Vic., and also notably above the national norm of 38 years. Compared to the Rest of Vic. average, the cohort aged 65-74 is over-represented on Phillip Island at 18.8%, while those aged 25-34 are under-represented at 8.1%. This concentration of the 65-74 age group is well above the national figure of 9.4%. Between 2021 and present, the population aged 35 to 44 has grown from 10.5% to 11.5%, while those aged 55 to 64 have declined from 17.3% to 16.1%, and the 45 to 54 group has dropped from 11.9% to 10.8%. Population forecasts for Phillip Island indicate substantial demographic changes by 2041, with the strongest projected growth in the 25-34 age cohort, which is expected to increase by 81%, adding 1,052 residents to reach a total of 2,344.