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

Based on AreaSearch's analysis, Phillip Island's population is around 16,218 as of Feb 2026. This reflects an increase of 2,419 people (17.5%) since the 2021 Census, which reported a population of 13,799 people. The change is inferred from the estimated resident population of 14,544 from the ABS as of June 2024 and an additional 703 validated new addresses since the Census date. This population level equates to a density ratio of 161 persons per square kilometer, providing significant space per person and potential room for further development. Phillip Island's 17.5% growth since the 2021 census exceeded the Rest of Vic. (8.1%) and the national average, marking it as a growth leader in the region. Population growth for the area was primarily driven by interstate migration, which contributed approximately 80.1% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising the 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 from these aggregations are also applied across all areas for years 2032 to 2041. Regarding demographic trends, exceptional growth, placing in the top 10 percent of Australia's non-metropolitan areas, is predicted over the period, with the area expected to expand by 7,901 persons by 2041 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 around 213 new homes approved per year, with 1,066 homes approved over the past 5 financial years (between FY-21 and FY-25) and 38 so far in FY-26. With an average of 1.9 people per year moving to the area for each dwelling built over the past 5 financial years (between FY-21 and FY-25), supply and demand appear well-balanced, creating stable market conditions, though recent data shows this has moderated to 1.1 people per dwelling over the past 2 financial years, suggesting an improved supply-demand balance. Development projects average $317,000 in construction value. Additionally, $24.3 million in commercial development approvals have been recorded this financial year, demonstrating moderate levels of commercial development.

Compared to the rest of Victoria, Phillip Island has moderately higher development activity (36.0% above the regional average per person over the 5 year period), 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, showing an expanding range of medium-density options that create a mix of opportunities across price brackets, from traditional family housing to more affordable compact alternatives. This represents a considerable change from the current housing mix (currently 89.0% houses), reflecting reduced availability of development sites and addressing shifting lifestyle demands and affordability requirements. With around 101 people per dwelling approval, Phillip Island shows characteristics of a growth area.

Looking ahead, Phillip Island is expected to grow by 6,226 residents through to 2041 (based on 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 33rdth percentile nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total, 17 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include the Cowes to Ventnor Shared Path, Samuel Property Warley Avenue Apartments, Lifestyle Communities Phillip Island, and the Phillip Island Recreation Reserve Master Plan, with the list below detailing those likely to be of most relevance.

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 features a skilled workforce, with lifestyle and retail sectors notably represented, an unemployment rate of just 2.8%, and 6.2% in estimated employment growth over the past year. As of December 2025, 6,626 residents are in work, while the unemployment rate is 0.9% below Regional Vic.'s rate of 3.7%, and workforce participation lags significantly (54.7% compared to Regional Vic.'s 61.5%). Based on Census responses, a moderate 23.1% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

The dominant employment sectors among residents include construction, health care & social assistance, and accommodation & food. The area demonstrates a particularly notable concentration in accommodation & food, with employment levels at 1.7 times the regional average. Meanwhile, agriculture, forestry & fishing has a limited presence with 2.2% employment compared to 7.5% regionally. The area appears to offer limited employment opportunities locally, as indicated by the count of the Census working population versus the resident population.

Based on AreaSearch analysis of SALM and ABS data, during the year to December 2025, employment levels increased by 6.2% and the labour force increased by 5.4%, causing the unemployment rate to fall by 0.7 percentage points. This compares to Regional Vic., where employment fell by 0.6%, the labour force contracted by 0.7%, and unemployment fell 0.1 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Phillip Island. These projections, covering five and ten-year periods, have been mapped against the local employment profile to estimate growth patterns. 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 industry-specific projections to Phillip Island's employment mix suggests local employment should increase by 6.4% over five years and 13.2% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

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

The Phillip Island SA2 shows a median taxpayer income of $44,012 and an average of $58,296 according to the latest postcode level ATO data aggregated by AreaSearch for FY-23. This is lower than average on a national basis, contrasting with Regional Vic.'s median income of $50,954 and average income of $62,728. Based on Wage Price Index growth of 8.25% since FY-23, current estimates would be approximately $47,643 (median) and $63,105 (average) as of September 2025. From the 2021 Census, household, family and personal incomes in Phillip Island all fall between the 11th and 17th percentiles nationally. Distribution data shows the predominant cohort spans 27.7% of locals (4,492 people) in the $800 - 1,499 category, contrasting with the surrounding region where the $1,500 - 2,999 bracket leads at 30.3%. Housing affordability pressures are severe, with only 84.9% of income remaining, ranking at the 13th percentile and 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

Dwelling structure within Phillip Island, as evaluated at the latest Census, comprised 89.1% houses and 11.0% other dwellings (semi-detached, apartments, 'other' dwellings), in comparison to Regional Vic.'s 90.1% houses and 9.9% other dwellings. Meanwhile, the level of home ownership within Phillip Island was well beyond that of Regional Vic., at 47.8%, with the remainder of dwellings either mortgaged (29.2%) or rented (22.9%). The median monthly mortgage repayment in the area was above the Regional Vic. average at $1,517, while the median weekly rent figure was recorded at $330, compared to Regional Vic.'s $1,430 and $285. Nationally, Phillip Island's mortgage repayments are significantly lower than the Australian average of $1,863, while rents are 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 dominate at 65.3% of all households, comprising 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% of the total. The median household size of 2.2 people is 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

Educational qualifications in Phillip Island trail regional benchmarks, with 23.5% of residents aged 15+ holding university degrees compared to 33.4% in VIC. This gap highlights potential for educational development and skills enhancement. Bachelor degrees lead at 15.7%, followed by postgraduate qualifications (4.2%) and graduate diplomas (3.6%). Trade and technical skills feature prominently, with 41.2% of residents aged 15+ holding vocational credentials, including advanced diplomas (13.5%) and certificates (27.7%).

Educational participation is notably high, with 26.5% of residents aged 15+ 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

Public transport analysis reveals 54 active transport stops operating within Phillip Island. These stops are serviced by 3 individual routes, collectively providing 156 weekly passenger trips. Transport accessibility is rated as moderate, with residents typically located 423 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 91%, with 5% walking. Vehicle ownership averages 1.3 per dwelling, which is below the regional average. Some 23.1% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 22 trips per day across all routes, equating to approximately 2 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, based on AreaSearch's assessment of mortality rates and chronic condition prevalence. Common health conditions are prevalent across both younger and older age cohorts, and the rate of private health cover is low at approximately 48% of the total population (~7,817 people). This compares to 50.5% across Regional Vic. and a national average of 55.7%.

The most common medical conditions in the area are arthritis and mental health issues, impacting 11.5% and 8.8% of residents, respectively, while 61.5% declared themselves as completely clear of medical ailments compared to 63.4% across Regional Vic. Working-age residents show an above-average prevalence of chronic health conditions. The area has 30.5% of residents aged 65 and over (4,952 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 was found to be below average in terms of cultural diversity, with 87.2% of its population being citizens, 81.3% born in Australia, and 93.4% speaking English only at home. The main religion on Phillip Island is Christianity, which makes up 42.4% of the population. However, the most apparent overrepresentation was in Judaism, which comprises 0.1% of the population, compared to 0.1% across Regional Vic..

In terms of ancestry (country of birth of parents), the top three represented groups on Phillip Island are English, comprising 32.2% of the population, Australian, comprising 27.8% of the population, and Irish, comprising 9.6% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Dutch is notably overrepresented at 2.0% of Phillip Island (vs 1.7% regionally), Scottish at 9.1% (vs 8.8%) and Welsh at 0.7% (vs 0.4%).

Phillip Island ranks among the oldest 10% of areas nationwide

The 52-year median age in Phillip Island is significantly above Regional Vic.'s average of 43 and similarly well above the national norm of 38. Compared to the Regional Vic. average, the 65 - 74 cohort is notably over-represented (18.9% locally), while 25 - 34 year-olds are under-represented (8.4%). This 65 - 74 concentration is well above the national 9.5%. In the period since 2021, 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. The 25 to 34 cohort shows the strongest projected growth at 71%, adding 975 residents to reach 2,344.