South Melbourne
Statistical Area - sa2

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

South Melbourne's population was around 12,992 as of Aug 2025. This reflected an increase of 1,299 people since the 2021 Census, which reported a population of 11,693 people. The change was inferred from the estimated resident population of 12,916 in June 2024 and an additional 413 validated new addresses since the Census date. This level of population equated to a density ratio of 6,874 persons per square kilometer, placing South Melbourne in the top 10% of national locations assessed by AreaSearch. The area's growth rate of 11.1% since the 2021 census exceeded both the national average (8.6%) and the state average, marking it as a growth leader. Overseas migration was the primary driver of population gains in 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 utilized VIC State Government's Regional/LGA projections released in 2023, adjusting using 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 projected demographic shifts, South Melbourne was forecasted to increase its population significantly, with an expected rise of 4,028 persons to 2041, reflecting a total increase of 30.4% over the 17 years.

Recent residential development output has been above average within South Melbourne when compared nationally

South Melbourne averaged approximately 318 new dwelling approvals annually. The Australian Bureau of Statistics produces development approval data on a financial year basis, totalling 1,594 approvals over the past five financial years from FY20 to FY25, with no approvals recorded so far in FY26. Over these five years, an average of 0.1 new residents per year arrived for each new home approved, indicating that new supply has kept pace with or exceeded demand, providing ample buyer choice and capacity for population growth beyond current forecasts. The average expected construction cost value of new properties during this period was $1,323,000, suggesting developers focused on the premium market with high-end developments.

This financial year (FY26), there have been $171.0 million in commercial approvals, demonstrating high levels of local commercial activity. Compared to Greater Melbourne, South Melbourne has 62.0% more new home approvals per person, creating greater choice for buyers. However, construction activity has eased recently. This level of activity is significantly above the national average, indicating robust developer interest in the area. New development consists of 4.0% detached houses and 96.0% attached dwellings, reflecting a trend towards denser development that provides accessible entry options appealing to downsizers, investors, and entry-level buyers. With approximately 1626 people per dwelling approval, South Melbourne reflects a highly mature market.

Looking ahead, South Melbourne is projected to grow by 3,952 residents through to 2041. Given current construction levels, housing supply should adequately meet demand, creating favourable conditions for buyers while potentially enabling growth that exceeds current forecasts.

South Melbourne has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes to local infrastructure significantly affect an area's performance. AreaSearch has identified 47 projects that could impact this region. Notable projects include South Melbourne Town Hall Restoration, Verde Arts Precinct, 122 Moray, and Emerald Hill Housing and Health Precinct. The following list details those likely most relevant.

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

South Melbourne has seen below average employment performance when compared to national benchmarks

South Melbourne has a highly educated workforce with significant representation in the technology sector. Its unemployment rate is 6.6%, with an estimated employment growth of 5.8% over the past year.

As of June 2025, there are 8,292 residents employed, and the unemployment rate is 2.0% higher than Greater Melbourne's rate of 4.6%. Workforce participation in South Melbourne is 67.8%, compared to Greater Melbourne's 64.1%. The key industries of employment among South Melbourne residents are professional & technical services, health care & social assistance, and finance & insurance. The area has a particular specialization in professional & technical services, with an employment share of 2.1 times the regional level.

Meanwhile, construction has limited presence, with only 5.8% of employment compared to the regional average of 9.7%. South Melbourne functions as an employment hub, hosting more jobs than residents and attracting workers from surrounding areas, with a ratio of 1.8 workers per resident at the Census. Between June 2024 and June 2025, employment levels in South Melbourne increased by 5.8%, while the labour force grew by 7.1%. This led to an increase in unemployment rate of 1.2 percentage points. In contrast, Greater Melbourne experienced employment growth of 3.5% and labour force growth of 4.0%, with a rise in unemployment rate of 0.5 percentage points. State-level data from Sep-25 shows that Victoria's employment grew by 1.08% year-on-year, adding 39,880 jobs. The state's unemployment rate was at 4.7%, compared to the national rate of 4.5%. Victoria's employment growth outpaced the national average of 0.26%. National employment forecasts from Jobs and Skills Australia, released in May 2025, suggest that South Melbourne's employment may grow by approximately 7.3% over five years and 14.4% over ten years, based on a simple weighting extrapolation using local industry-specific projections.

Income metrics indicate excellent economic conditions, with the area achieving higher performance than 75% of national locations assessed by AreaSearch

South Melbourne had a median taxpayer income of $68,937 and an average of $106,223 according to postcode level ATO data aggregated by AreaSearch for the financial year 2022. This places South Melbourne in the top percentile nationally, contrasting with Greater Melbourne's median income of $54,892 and average income of $73,761. Based on Wage Price Index growth of 10.11% since financial year 2022, estimates for March 2025 would be approximately $75,907 (median) and $116,962 (average). Census data reveals individual earnings at the 95th percentile nationally are $1,310 weekly. In South Melbourne, 29.5% of residents (3,832 people) fall into the $1,500 - 2,999 weekly income bracket. This aligns with the region where this cohort represents 32.8%. A substantial proportion of high earners (34.4%) in South Melbourne have incomes above $3,000/week, indicating strong economic capacity. High housing costs consume 16.9% of income, but strong earnings still place disposable income at the 71st percentile nationally. The area's SEIFA income ranking places it in the 9th decile.

South Melbourne features a more urban dwelling mix with significant apartment living, with a higher proportion of rental properties than the broader region

In South Melbourne, as per the most recent Census evaluation, 4.6% of dwellings were houses while 95.5% consisted of other types such as semi-detached units and apartments. In comparison, Melbourne metropolitan area had 8.7% houses and 91.3% other dwellings. Home ownership in South Melbourne stood at 20.9%, aligning with the Melbourne metro average. Dwellings were either mortgaged (23.3%) or rented (55.9%). The median monthly mortgage repayment was $2,217, exceeding Melbourne's metro average of $2,170. Weekly rent in South Melbourne was recorded at $421 compared to Melbourne's metro figure of $420. Nationally, South Melbourne's median monthly mortgage repayments were higher at $2,217 versus Australia's average of $1,863, and weekly rents were substantially higher at $421 against the national figure of $375.

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

Family households constitute 51.2% of all households, including 15.2% couples with children, 27.7% couples without children, and 7.0% single parent families. Non-family households comprise the remaining 48.8%, with lone person households at 43.2% and group households comprising 5.6%. The median household size is 1.9 people, which aligns with the Greater Melbourne average.

The educational profile of South Melbourne exceeds national averages, with above-average qualification levels and academic performance metrics

South Melbourne's educational attainment is notably higher than broader benchmarks. Among residents aged 15+, 56.9% hold university qualifications, compared to Australia's 30.4% and Victoria's 33.4%. Bachelor degrees are the most common at 35.8%, followed by postgraduate qualifications (16.6%) and graduate diplomas (4.5%). Vocational pathways account for 20.1% of qualifications, with advanced diplomas at 10.8% and certificates at 9.3%.

Educational participation is high, with 26.4% of residents currently enrolled in formal education. This includes 8.7% in tertiary education, 6.3% in primary education, and 5.0% pursuing secondary education. As of the latest data (2016), South Melbourne's 4 schools have a combined enrollment of 888 students. The area has typical Australian school conditions with an ICSEA score of 1037, indicating balanced educational opportunities. School places per 100 residents are lower than the regional average at 6.8, suggesting some students may attend schools in adjacent areas. Educational provision is conventional, split between 1 primary and 3 secondary institutions.

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

Transport analysis shows 39 active public transport stops in South Melbourne. These include a mix of light rail and bus services. Eight routes operate in total, providing 4,457 weekly passenger trips combined.

Transport accessibility is rated excellent with residents typically located 144 meters from the nearest stop. Service frequency averages 636 trips per day across all routes, equating to approximately 114 weekly trips per individual stop.

The level of general health in South Melbourne is notably higher than the national average with both young and old age cohorts seeing low prevalence of common health conditions

South Melbourne shows better-than-average health outcomes for both younger and older residents. Common health conditions have low prevalence: mental health issues affect 9.1%, asthma impacts 7.2%, and 72.1% report no medical ailments.

This compares to Greater Melbourne's 73.3%. Private health cover is high, with 75% (9,705 people) covered, compared to the national average of 55.3%. Seniors aged 65 and over make up 16.6% (2,152 people), higher than Greater Melbourne's 14.3%. Health outcomes for seniors are above average, similar to the general population's health profile.

South Melbourne is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

South Melbourne's cultural diversity is notable with 25.0% speaking a language other than English at home and 37.2% born overseas. Christianity is the predominant religion, accounting for 37.5%. Judaism, however, shows an overrepresentation of 1.5%, compared to Greater Melbourne's 3.7%.

The top three ancestry groups are English (24.3%), Australian (17.2%), and Other (12.5%). Some ethnic groups show notable differences: Russian is slightly higher at 0.8% in South Melbourne versus 0.9% regionally, French is similar at 0.9%, and Greek is exactly the same at 3.2%.

South Melbourne's population is slightly older than the national pattern

The median age in South Melbourne is 39 years, slightly higher than Greater Melbourne's average of 37 years and close to the national average of 38 years. Compared to Greater Melbourne, South Melbourne has a notably higher percentage of residents aged 25-34 (22.2% vs 16.0%) but fewer residents aged 5-14 (6.4% vs 9.7%). This concentration of young adults is also above the national average of 14.5%. Post-2021 Census data shows that the population aged 15-24 has grown from 8.7% to 10.3%, while those aged 25-34 have increased from 20.7% to 22.2%. Conversely, the percentage of residents aged 45-54 has decreased from 14.3% to 13.0%, and those aged 5-14 have dropped from 7.4% to 6.4%. Population forecasts for South Melbourne indicate significant demographic changes by 2041, with the 45-54 age group expected to grow by 55% (929 people), reaching a total of 2,616 from its current figure of 1,686.