Preston - West
Statistical Area - sa2

Population growth drivers in Preston - West are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

Preston - West's population is approximately 13,492 as of Aug 2025. This figure reflects an increase of 796 people since the 2021 Census, which reported a population of 12,696. The change is inferred from ABS estimated resident population of 13,470 in June 2024 and additional 56 validated new addresses since the Census date. This results in a density ratio of 3,779 persons per square kilometer, placing Preston - West in the top 10% of national locations assessed by AreaSearch. Over the past decade, Preston - West has shown resilient growth patterns with a compound annual growth rate of 0.8%, outperforming the SA3 area. Population growth was primarily driven by overseas migration, contributing approximately 83.2% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered, AreaSearch utilises VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Based on demographic trends and latest population numbers, Preston - West is forecasted to increase by 5,432 persons by 2041, recording a gain of 40.1% in total over the 17-year period.

AreaSearch analysis of residential development drivers sees Preston - West recording a relatively average level of approval activity when compared to local markets analysed countrywide

Preston-West has averaged approximately 49 new dwelling approvals annually. The Australian Bureau of Statistics produces development approval data on a financial year basis. Over the past five financial years, from FY21 to FY25248 dwellings were approved in total, with 13 approvals recorded so far in FY26. On average, about 0.9 people have moved to the area annually for each dwelling built during these five years.

This indicates that new supply is keeping pace with or exceeding demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts. New properties are constructed at an average expected cost of $489,000. In this financial year, there have been $7.7 million in commercial approvals, suggesting the area's residential character. Compared to Greater Melbourne, Preston-West records significantly lower building activity, with 51.0% fewer approvals per person on average. This limited new supply generally supports stronger demand and values for established properties. New development in Preston-West consists of approximately 28.0% detached houses and 72.0% attached dwellings.

This trend towards denser development provides accessible entry options, appealing to downsizers, investors, and entry-level buyers. This represents a considerable shift from the current housing mix, which is currently 60.0% houses. This change reflects reduced availability of development sites and addresses shifting lifestyle demands and affordability requirements. With around 293 people per dwelling approval, Preston-West shows signs of a developing market. According to future projections, Preston-West is expected to add approximately 5,410 residents by 2041. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth.

Preston - West has strong levels of nearby infrastructure activity, ranking in the top 30% nationally

Local infrastructure changes significantly influence an area's performance. AreaSearch has identified 24 projects likely impacting this region. Notable initiatives are Preston Crossing, Northland Shopping Centre Redevelopment, Preston Central Structure Plan, and Suburban Rail Loop North. The following details projects most relevant:.

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

AreaSearch assessment positions Preston - West ahead of most Australian regions for employment performance

Preston - West has an educated workforce with strong professional services representation. Its unemployment rate was 3.2% in the past year, with estimated employment growth of 2.4%.

As of June 2025, 8,125 residents were employed, with an unemployment rate of 3.1%, below Greater Melbourne's 4.6%. Workforce participation was 67.8%, slightly higher than Greater Melbourne's 64.1%. Key industries included health care & social assistance, education & training, and professional & technical services. Education & training had a high representation, at 1.4 times the regional level.

Conversely, construction showed lower representation at 7.0% compared to the regional average of 9.7%. In the past year, employment increased by 2.4%, labour force by 1.5%, and unemployment fell by 0.9 percentage points. By comparison, Greater Melbourne saw employment growth of 3.5%, labour force growth of 4.0%, with unemployment rising by 0.5 percentage points. State-level data to Sep-25 showed VIC employment grew by 1.08% year-on-year, with the state unemployment rate at 4.7%. National employment forecasts from May 2025 project a growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Preston - West's employment mix suggests local growth of approximately 6.8%% over five years and 13.9% over ten years.

The area exhibits notably strong income performance, ranking higher than 70% of areas assessed nationally through AreaSearch analysis

Preston - West had a median taxpayer income of $58,911 and an average of $72,849 according to AreaSearch's postcode level ATO data for the financial year 2022. This is higher than Greater Melbourne's median income of $54,892 and average income of $73,761 during the same period. By March 2025, estimated median and average incomes would be approximately $64,867 and $80,214 respectively, based on a 10.11% growth from the financial year 2022 as per the Wage Price Index. The 2021 Census figures indicate that incomes in Preston - West cluster around the 66th percentile nationally. Income distribution shows that 31.8% of locals (4,290 people) fall into the $1,500 - 2,999 category, a pattern similar to the broader area where 32.8% occupy this range. After housing costs, 85.0% of income remains for other expenses. The area's SEIFA income ranking places it in the 7th decile.

Preston - West displays a diverse mix of dwelling types, with above-average rates of outright home ownership

Preston-West's dwelling structures in the latest Census consisted of 60.2% houses and 39.8% other dwellings (semi-detached, apartments, 'other' dwellings). This is comparable to Melbourne metro's distribution of dwelling types, also at 60.2% houses and 39.8% other dwellings. Home ownership in Preston-West was higher than Melbourne metro's level, standing at 33.4%. The remaining dwellings were either mortgaged (31.7%) or rented (34.8%). The median monthly mortgage repayment in the area was $2,144, surpassing Melbourne metro's average of $2,000. The median weekly rent figure for Preston-West was recorded at $400, compared to Melbourne metro's $371. Nationally, Preston-West's mortgage repayments were significantly higher than the Australian average of $1,863, while rents exceeded the national figure of $375.

Preston - West features high concentrations of group households, with a higher-than-average median household size

Family households account for 66.6% of all households, including 32.2% couples with children, 22.8% couples without children, and 10.1% single parent families. Non-family households make up the remaining 33.4%, with lone person households at 26.4% and group households comprising 7.0%. The median household size is 2.5 people, larger than the Greater Melbourne average of 2.4.

Educational achievement in Preston - West places it within the top 10% nationally, reflecting strong academic performance and high qualification levels across the community

Educational attainment in Preston-West is notably high, with 44.7% of residents aged 15 and above holding university qualifications. This compares to national figures of 30.4% and regional (SA4) figures of 32.8%. Bachelor degrees are the most common at 28.3%, followed by postgraduate qualifications at 11.4% and graduate diplomas at 5.0%. Vocational pathways account for 22.5% of qualifications, with advanced diplomas at 10.1% and certificates at 12.4%.

Educational participation is also high, with 29.1% of residents currently enrolled in formal education. This includes 8.9% in primary education, 7.2% in tertiary education, and 6.6% pursuing secondary education. Preston-West has four schools with a combined enrollment of 1,805 students. The area demonstrates significant socio-educational advantages and academic achievement, with an ICSEA score of 1133. All four schools focus exclusively on primary education, with secondary options available in surrounding areas. School capacity exceeds typical residential needs, with 13.4 places per 100 residents compared to the regional average of 10.2, indicating that Preston-West serves as an educational center for the broader region.

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

Preston-West has 51 active public transport stops, operating a mix of lightrail and buses. These are serviced by 9 individual routes that collectively provide 4770 weekly passenger trips. Transport accessibility is rated excellent, with residents typically located 181 meters from the nearest stop.

Service frequency averages 681 trips per day across all routes, equating to approximately 93 weekly trips per stop.

The level of general health in Preston - West is notably higher than the national average with prevalence of common health conditions quite low across both younger and older age cohorts

Preston West demonstrates lower-than-average prevalence of common health conditions among both younger and older age groups. Approximately 56% (~7,555 people) have private health cover, higher than Greater Melbourne's 52.6%.

Mental health issues affect 9.6%, while asthma impacts 7.9% of residents. About 70.4% report no medical ailments, similar to Greater Melbourne's 70.2%. The area has 14.3% (1,930 people) aged 65 and over. Health outcomes among seniors are above average, mirroring the general population's health profile.

Preston - West was found to be more culturally diverse than the vast majority of local markets in Australia, upon assessment of a range of language and cultural background related metrics

Preston-West is more culturally diverse than most local markets, with 30.9% of its population born overseas and 32.6% speaking a language other than English at home. Christianity is the predominant religion in Preston-West, comprising 39.9% of the population. Islam is overrepresented compared to Greater Melbourne, making up 6.1% of Preston-West's population.

The top three ancestral groups are English (18.1%), Australian (17.0%), and Italian (12.1%). Some ethnic groups have notable divergences: Greek is slightly overrepresented at 6.0%, Macedonian is underrepresented at 1.3%, and Lebanese is nearly equally represented at 1.6%.

Preston - West's population is slightly younger than the national pattern

The median age in Preston-West is 38 years, close to Greater Melbourne's average of 37 and equivalent to Australia's median of 38. Compared to Greater Melbourne, Preston-West has a higher proportion of residents aged 45-54 (14.7%) but fewer residents aged 15-24 (10.9%). Between the 2021 Census and now, the percentage of residents aged 15-24 has increased from 10.0% to 10.9%, while the percentage of those aged 0-4 has decreased from 5.7% to 4.7%. By 2041, Preston-West's age composition is expected to change significantly. The 45-54 age group is projected to grow by 53% (1,059 people), reaching 3,043 from its current total of 1,983.