Reservoir - South West

Reservoir - South West has seen population growth performance typically on par with national averages when looking at short and medium term trends

Reservoir South West's population was around 15,221 as of November 2025. This figure reflects an increase of 1,131 people since the 2021 Census, which reported a population of 14,090. The change is inferred from ABS data showing an estimated resident population of 15,161 in June 2024 and an additional 248 validated new addresses since the Census date. This results in a density ratio of 2,708 persons per square kilometer, placing it in the upper quartile nationally according to AreaSearch's assessments. The area's 8.0% growth since census is within 0.9 percentage points of the national average (8.9%), indicating competitive growth fundamentals. Overseas migration contributed approximately 79.9% of overall population gains during recent periods, driving primary growth in the area.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area released in 2024 with a base year of 2022. For areas not covered by this data, it utilises VIC State Government's Regional/LGA projections from 2023 with adjustments made via 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. Based on projected demographic shifts, a significant population increase is forecast in the top quartile of statistical areas nationally, with Reservoir South West expected to increase by 6,155 persons to 2041, reflecting an overall increase of 40.0% over these 17 years.

Recent residential development output has been above average within Reservoir - South West when compared nationally

Reservoir - South West averaged approximately 87 new dwelling approvals annually over the past five financial years, from FY21 to FY25. A total of 436 homes were approved during this period, with an additional 34 approved so far in FY26. The average population increase per dwelling built over these years was 0.5 people.

This indicates that new supply has been keeping pace with or exceeding demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts. The average construction value of new homes was $281,000, which is under regional levels, suggesting more accessible housing choices for buyers. In FY26, $61,000 in commercial development approvals have been recorded, reflecting a predominantly residential focus. Comparatively, Reservoir - South West shows approximately 75% of the construction activity per person compared to Greater Melbourne and places among the 72nd percentile nationally when assessed on areas. Recent construction comprises 32.0% detached houses and 68.0% townhouses or apartments, marking a significant shift from existing housing patterns which are currently 57.0% houses.

This focus on higher-density living creates more affordable entry points and suits downsizers, investors, and first-home buyers. With around 181 people per dwelling approval, Reservoir - South West exhibits characteristics of a growth area. Looking ahead to 2041, Reservoir - South West is projected to grow by approximately 6,095 residents according to the latest AreaSearch quarterly estimate. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth.

Reservoir - South West has moderate levels of nearby infrastructure activity, ranking in the 46thth percentile nationally

Changes to local infrastructure significantly affect an area's performance. AreaSearch identified four projects potentially impacting the region: Reservoir Leisure Centre Redevelopment, Suburban Rail Loop North, Goosnargh Housing Development, and Reservoir Suburban Revitalisation Program. The following details these key projects.

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Employment conditions in Reservoir - South West remain below the national average according to AreaSearch analysis

Reservoir - South West has an educated workforce with strong professional services representation, an unemployment rate of 4.3% as of September 2025, and estimated employment growth of 0.7% over the past year. The area's unemployment rate is 0.4% lower than Greater Melbourne's rate of 4.7%, with workforce participation at 66.5%.

Dominant employment sectors include health care & social assistance, education & training, and construction. Public administration & safety shows specialization with an employment share 1.4 times the regional level, while retail trade has lower representation at 8.3% versus the regional average of 9.8%. Limited local employment opportunities are indicated by Census data comparing working population to resident population. In the past year, employment increased by 0.7%, labour force by 0.5%, reducing unemployment by 0.2 percentage points.

Greater Melbourne experienced higher growth with employment up 3.0% and labour force up 3.3%. State-level data from 25-Nov shows VIC employment grew by 1.13% year-on-year, adding 41,950 jobs, with an unemployment rate of 4.7%, outpacing national growth of 0.14%. National employment forecasts for Reservoir - South West suggest a 6.6% increase over five years and 13.7% over ten years based on industry-specific projections.

Income levels align closely with national averages, indicating typical economic conditions for Australian communities according to AreaSearch analysis

The median taxpayer income in South West SA2 postcode is $53,296 and the average is $63,093 according to AreaSearch's aggregation of latest ATO data for financial year 2022. This is slightly below national averages, contrasting with Greater Melbourne's median income of $54,892 and average income of $73,761. As of September 2025, estimated incomes would be approximately $59,777 (median) and $70,765 (average), based on Wage Price Index growth of 12.16% since financial year 2022. According to the 2021 Census, incomes in Reservoir - South West cluster around the 55th percentile nationally. The largest income segment comprises 33.9% earning $1,500-$2,999 weekly, with 5,159 residents falling into this category. This aligns with the regional distribution where this cohort also represents 32.8%. Housing affordability pressures are severe, with only 83.1% of income remaining after housing costs, ranking at the 49th percentile nationally. The area's SEIFA income ranking places it in the 6th decile.

Reservoir - South West displays a diverse mix of dwelling types, with a higher proportion of rental properties than the broader region

Reservoir - South West had 56.8% houses and 43.2% other dwellings as of the latest Census, compared to Melbourne metro's 60.2% houses and 39.8% other dwellings. Home ownership in Reservoir - South West was at 27.3%, with mortgaged dwellings at 31.0% and rented dwellings at 41.6%. The median monthly mortgage repayment in the area was $2,020, above Melbourne metro's $2,000 average. The median weekly rent figure was recorded at $361, compared to Melbourne metro's $371. Nationally, Reservoir - South West's mortgage repayments were higher than the Australian average of $1,863, while rents were less than the national figure of $375.

Reservoir - South West features high concentrations of group households and lone person households, with a fairly typical median household size

Family households constitute 64.2% of all households, including 28.6% couples with children, 23.0% couples without children, and 10.8% single parent families. Non-family households comprise the remaining 35.8%, with lone person households at 30.6% and group households making up 5.3% of the total. The median household size is 2.4 people, which aligns with the Greater Melbourne average.

Reservoir - South West shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

The area's educational profile is notable regionally, with university qualification rates at 38.9% among residents aged 15+, surpassing the Australian average of 30.4% and the SA4 regional rate of 32.8%. Bachelor degrees are most prevalent at 24.4%, followed by postgraduate qualifications (10.6%) and graduate diplomas (3.9%). Vocational credentials are also prominent, with 27.1% of residents aged 15+ holding such qualifications - advanced diplomas account for 11.6% while certificates make up 15.5%.

Educational participation is high, with 28.9% of residents currently enrolled in formal education. This includes 8.8% in primary education, 6.5% in tertiary education, and 6.0% pursuing secondary education.

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

Reservoir - South West has 108 active public transport stops. These include train, light rail, and bus services. There are 11 individual routes operating in the area, serving a total of 11,676 weekly passenger trips.

The average distance from residents to the nearest transport stop is 147 meters. On average, there are 1,668 trips per day across all routes, which translates to approximately 108 weekly trips per individual stop.

The level of general health in Reservoir - South West is notably higher than the national average with prevalence of common health conditions low among the general population though higher than the nation's average across older, at risk cohorts

Reservoir South West shows better-than-average health outcomes, with low prevalence of common conditions among its general population.

However, it has higher rates among older and at-risk cohorts compared to national averages. Private health cover is held by approximately 51% of its total population (~7,777 people), slightly lower than the average SA2 area. The most prevalent medical conditions are mental health issues (9.7%) and asthma (7.7%), while 71.2% of residents report no medical ailments, compared to 70.2% in Greater Melbourne. It has a lower proportion of seniors aged 65 and over at 13.0% (1,984 people), compared to Greater Melbourne's 15.2%. Health outcomes among seniors require more attention than the broader population.

Reservoir - South 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

Reservoir-South West has notable cultural diversity, with 33.2% of its population born overseas and 36.6% speaking a language other than English at home. Christianity is the predominant religion, accounting for 42.5%. Islam is slightly overrepresented compared to Greater Melbourne, with 6.5% versus 6.1%.

The top three ancestry groups are English (17.5%), Australian (16.5%), and Other (13.2%). Italian (12.2%) and Greek (5.2%) are noticeably overrepresented, while Macedonian is slightly underrepresented at 1.4% compared to the regional average of 2.1%.

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

Reservoir - South West has a median age of 37, matching Greater Melbourne's figure and closely resembling Australia's median age of 38. The 35-44 age group is notably strong at 18.8%, compared to Greater Melbourne, while the 15-24 cohort is less prevalent at 10.5%. Between 2021 and now, the 15-24 age group has increased from 9.2% to 10.5% of the population. Conversely, the 5-14 age group has decreased from 11.0% to 9.8%. By 2041, demographic projections indicate significant shifts in Reservoir - South West's age structure, with the 45-54 group expected to grow by 57%, reaching 3,182 people from its current total of 2,028.