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 16,218 as of Feb 2026. This reflected an increase of 2,419 people (17.5%) since the 2021 Census which reported a population of 13,799 people. The change was inferred from the estimated resident population of 14,544 as of June 2024 and an additional 703 validated new addresses since the Census date. This level of population equated to a density ratio of 161 persons per square kilometer. Phillip Island's growth exceeded the Rest of Vic (8.1%) and the national average, 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, AreaSearch utilised 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 were applied across all areas for years 2032 to 2041. By 2041, the area was expected to expand by 7,901 persons based on the latest annual ERP population numbers, reflecting an increase of 38.4% 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. Over the past five financial years, from FY-21 to FY-25, 1,066 homes were approved, with a further 35 approved so far in FY-26. On average, 1.9 people moved to the area per dwelling built over these five years, indicating balanced supply and demand conditions. However, this ratio has moderated to 1.1 people per dwelling over the past two financial years, suggesting an improved supply-demand 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 has shown moderately higher development activity, with 36.0% above the regional average per person over the past five years, maintaining good buyer choice while supporting existing property values. This is well above the national average, reflecting strong developer confidence in the area. New development consists of 56.0% detached dwellings and 44.0% attached dwellings, offering a mix of medium-density options across various price brackets.

This represents a significant shift from the current housing mix, which is predominantly houses (89.0%). With around 101 people per dwelling approval, Phillip Island exhibits characteristics of a growth area. According to AreaSearch's latest quarterly estimate, Phillip Island is expected to grow by approximately 6,226 residents through to 2041. 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 33rdth percentile nationally

Changes to local infrastructure significantly affect an area's performance. AreaSearch has identified 17 projects that could impact this region. Notable ones are 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.

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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. The unemployment rate was 2.9% as of September 2025, which is lower than the Rest of Vic.'s rate of 3.8%. Employment growth over the past year was estimated at 4.8%.

There were 6,577 residents in work by September 2025, with an unemployment rate of 0.9% below the rest of Victoria's rate. Workforce participation on Phillip Island was 54.3%, compared to Rest of Vic.'s 61.4%. According to Census responses, 23.1% of residents worked from home. The dominant employment sectors were construction, health care & social assistance, and accommodation & food.

Employment in accommodation & food was particularly notable at 1.7 times the regional average. Agriculture, forestry & fishing had limited presence with 2.2% employment compared to the regional average of 7.5%. There appeared to be limited local employment opportunities based on Census data. Between September 2024 and September 2025, employment levels increased by 4.8%, labour force increased by 4.2%, and unemployment fell by 0.6 percentage points. In contrast, Rest of Vic. saw employment fall by 0.7% and unemployment rise marginally during the same period. Jobs and Skills Australia's national employment forecasts from May-25 project national employment growth of 6.6% over five years and 13.7% over ten years. 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, although this is a simplified extrapolation for illustrative purposes only.

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

Phillip Island SA2 had median taxpayer income of $44,012 and average income of $58,296 in financial year 2023. These figures are lower than national averages. Rest of Vic.'s median income was $50,954 with average income of $62,728 in the same period. By September 2025, estimated median income would be approximately $47,643 and average income $63,105, based on Wage Price Index growth of 8.25%. Phillip Island's household incomes fell between 11th and 17th percentiles nationally in the 2021 Census. Predominant income cohort was 27.7% (4,492 people) in $800 - 1,499 bracket, contrasting with surrounding region's leading bracket of $1,500 - 2,999 at 30.3%. Housing affordability pressures were severe, with only 84.9% of income remaining, ranking at 13th percentile. Area's SEIFA income ranking placed it in the 4th decile.

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

Phillip Island's dwelling structure, as per the latest Census, consisted of 89.1% houses and 11.0% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Non-Metro Vic.'s 90.1% houses and 9.9% other dwellings. Home ownership in Phillip Island stood at 47.8%, with mortgaged dwellings at 29.2% and rented dwellings at 22.9%. The median monthly mortgage repayment was $1,517, higher than Non-Metro Vic.'s average of $1,430. Median weekly rent in Phillip Island was $330, compared to Non-Metro Vic.'s $285. 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 make up 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, smaller than the Rest of 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. Among residents aged 15+, 23.5% hold university degrees, compared to Victoria's 33.4%. This gap suggests potential for educational development and skills enhancement. Bachelor degrees are the 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, with 26.5% currently enrolled in formal education. This includes 10.1% in primary education, 7.6% in secondary education, and 3.0% pursuing tertiary education.

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%, with 5% walking. The average vehicle ownership per dwelling is 1.3, below the regional average.

According to the 2021 Census, 23.1% of residents work from home, which may be influenced by 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. Mortality rates and chronic condition prevalence are high among both younger and older age cohorts. Private health cover is low, with approximately 48% coverage (~7,817 people), compared to 50.5% in the rest of Victoria and a national average of 55.7%.

The most prevalent medical conditions are arthritis (11.5%) and mental health issues (8.8%), while 61.5% of residents report no medical ailments, compared to 63.4% in the rest of Victoria. Working-age residents have an above-average prevalence of chronic health conditions. The area has a higher proportion of residents aged 65 and over, at 30.5% (4,952 people), than the rest of Victoria (23.9%), 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, born in Australia, and speaking English only at home. Christianity is the dominant religion on Phillip Island, comprising 42.4% of the population. However, Judaism is overrepresented compared to regional averages, making up 0.1% of Phillip Island's population versus 0.1% across Rest of Vic..

The top three ancestry groups in Phillip Island are English (32.2%), Australian (27.8%), and Irish (9.6%). Notably, Dutch (2.0%) and Scottish (9.1%) populations are overrepresented compared to regional averages of 1.7% and 8.8%, respectively, while Welsh is slightly overrepresented at 0.7%.

Phillip Island ranks among the oldest 10% of areas nationwide

The median age in Phillip Island is 52 years, which is significantly higher than Rest of Vic.'s average of 43 and well above the national norm of 38. Compared to the Rest of Vic. average, the 65-74 cohort is notably over-represented at 18.9% in Phillip Island, while the 25-34 year-olds are under-represented at 8.4%. This concentration of the 65-74 age group is well above the national average of 9.5%. Between 2021 and present, the 35 to 44 age group has grown from 10.5% to 11.7% of the population, while the 15 to 24 cohort increased from 7.5% to 8.6%. Conversely, the 55 to 64 cohort has declined from 17.3% to 15.8%, and the 45 to 54 group dropped from 11.9% to 10.6%. Population forecasts for 2041 indicate substantial demographic changes for Phillip Island, with the 25 to 34 cohort projected to grow by 71%, adding 975 residents to reach a total of 2,344 in that age group.