Watsonia
Statistical Area - sa2

An assessment of population growth drivers in Watsonia reveals an overall ranking slightly below national averages considering recent, and medium term trends

Watsonia's population was around 9,572 as of Aug 2025. This figure reflects an increase of 336 people since the 2021 Census, which reported a population of 9,236. The change is inferred from ABS estimated resident population of 9,518 in Jun 2024 and an additional 52 validated new addresses since the Census date. This results in a population density ratio of 2,525 persons per square kilometer, placing Watsonia in the upper quartile relative to national locations assessed by AreaSearch. The area's growth rate of 3.6% since census is within 1.4 percentage points of its SA3 area (5.0%), indicating competitive growth fundamentals. Overseas migration contributed approximately 50.6% of overall population gains during recent periods.

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, AreaSearch utilises VIC State Government's Regional/LGA projections from 2023, adjusting using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future population dynamics anticipate a significant increase in the top quartile of statistical areas analysed by AreaSearch, with Watsonia expected to expand by 2,930 persons to 2041 based on latest numbers, recording a gain of 30.1% over the 17 years.

AreaSearch assessment of residential development drivers sees a low level of activity in Watsonia, placing the area among the bottom 25% of areas assessed nationally

Watsonia has recorded approximately 27 residential properties granted approval annually. Development approval data is provided by the ABS on a financial year basis: 135 homes over the past five financial years, from FY-21 to FY-25, and three so far in FY-26. Over these five years, an average of 0.1 new residents per year per dwelling constructed was observed. This supply has been meeting or surpassing demand, offering greater buyer choice while supporting potential population growth above projections.

The average value for new dwellings developed is $521,000. In FY-26, $23.6 million in commercial development approvals have been recorded, indicating moderate levels of commercial development. Compared to Greater Melbourne, Watsonia has significantly less development activity, at 57.0% below the regional average per person. This scarcity typically strengthens demand and prices for existing properties. New development consists of 50.0% detached dwellings and 50.0% medium and high-density housing, reflecting a shift from the current housing mix of 91.0% houses. The location has approximately 488 people per dwelling approval, indicating an established area. Future projections show Watsonia adding 2,876 residents by 2041.

At current development rates, housing supply may struggle to match population growth, potentially heightening buyer competition and supporting price increases.

Watsonia has strong levels of nearby infrastructure activity, ranking in the top 40% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified seven projects that may affect this region. Major initiatives include the 149 McKimmies Road Residential Precinct, Uni Hill Factory Outlets Stage 3A, Diamond Creek Community Infrastructure Master Plan, and Diamond Creek Township Streetscape Improvements. The following list details projects most likely to be relevant.

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

Employment conditions in Watsonia demonstrate strong performance, ranking among the top 35% of areas assessed nationally

Watsonia has an educated workforce with strong professional services representation. Its unemployment rate was 2.8% in June 2025, lower than Greater Melbourne's 4.6%.

Employment growth over the past year was estimated at 1.5%. As of June 2025, 5,262 residents were employed, with a workforce participation rate similar to Greater Melbourne's 64.1%. Leading industries include health care & social assistance, construction, and education & training, with healthcare notably specialized at 1.2 times the regional level. However, accommodation & food services are under-represented at 4.4% compared to Greater Melbourne's 6.4%.

Employment opportunities locally may be limited as indicated by Census data. During the year to June 2025, employment levels increased by 1.5%, keeping unemployment relatively stable at 1.8% below Greater Melbourne's rate. By Sep-25, Victoria recorded employment growth of 1.08% year-on-year, with an unemployment rate of 4.7%. National forecasts suggest total employment growth of 6.6% over five years and 13.7% over ten years, with local projections estimated at approximately 6.9% and 14.2%, respectively, based on Watsonia's industry mix.

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

Income data for Watsonia from AreaSearch's latest postcode level ATO figures for financial year 2022 shows median assessed income at $58,741 and average income at $70,096. Comparing this with Greater Melbourne's median of $54,892 and average of $73,761 reveals Watsonia's higher incomes. Considering a 10.11% growth in wages since financial year 2022, estimated current figures for March 2025 are approximately $64,680 (median) and $77,183 (average). According to the 2021 Census, incomes in Watsonia fall around the 63rd percentile nationally. Income distribution shows that 32.2% of individuals earn between $1,500 - 2,999 per week, similar to the broader regional trend of 32.8%. After housing expenses, 86.2% of income remains for other costs. Watsonia's SEIFA income ranking places it in the 7th decile.

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

Watsonia's dwelling structures, as per the latest Census, consisted of 91.0% houses and 9.0% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's 76.0% houses and 24.0% other dwellings. Home ownership in Watsonia was 38.5%, similar to Melbourne metro's level. Mortgaged dwellings comprised 38.4%, while rented dwellings accounted for 23.2%. The median monthly mortgage repayment in the area was $2,037, lower than Melbourne metro's average of $2,167. The median weekly rent figure in Watsonia was $390, compared to Melbourne metro's $399. Nationally, Watsonia's mortgage repayments exceeded the Australian average of $1,863, while rents were higher than the national figure of $375.

Watsonia has a typical household mix, with a higher-than-average median household size

Family households account for 73.9% of all households, including 34.5% couples with children, 26.4% couples without children, and 11.7% single parent families. Non-family households constitute the remaining 26.1%, with lone person households at 23.1% and group households comprising 3.1%. The median household size is 2.6 people, larger than the Greater Melbourne average of 2.5 people.

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

Watsonia's residents aged 15 and above have higher educational qualifications than the regional average. Specifically, 33.6% hold university degrees compared to 41.2% in the SA3 area. Bachelor degrees are most common at 21.5%, followed by postgraduate qualifications (8.2%) and graduate diplomas (3.9%). Vocational credentials are also prevalent, with 31.1% of residents holding such qualifications – advanced diplomas (10.9%) and certificates (20.2%).

Educational participation is notable, with 26.8% currently enrolled in formal education. This includes primary education (9.3%), secondary education (6.6%), and tertiary education (4.9%). Watsonia's four schools have a combined enrollment of 2,073 students. The suburb exhibits above-average socio-educational conditions with an ICSEA score of 1050. Educational provision is balanced with three primary schools and one secondary school serving distinct age groups.

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

Watsonia has 54 active public transport stops, serving a mix of train and bus routes. These stops are covered by five different routes, offering a total of 3,814 weekly passenger trips. The average distance from residents to the nearest transport stop is 188 meters, indicating excellent accessibility.

Service frequency averages 544 trips per day across all routes, translating to approximately 70 weekly trips per individual stop.

Watsonia's residents are relatively healthy in comparison to broader Australia with common health conditions somewhat prevalent across both younger and older age cohorts

Watsonia's health metrics are close to national benchmarks. Common health conditions are somewhat prevalent across both younger and older age cohorts.

The rate of private health cover is very high at approximately 54% of the total population (~5,207 people), compared to 60.3% across Greater Melbourne. The most common medical conditions in the area are mental health issues and arthritis, impacting 8.4 and 8.3% of residents respectively, while 68.1% declare themselves completely clear of medical ailments, compared to 69.3% across Greater Melbourne. As of 2021, 19.8% of Watsonia's residents are aged 65 and over (1,896 people). Health outcomes among seniors present some challenges, broadly in line with the general population's health profile.

Watsonia 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

Watsonia's population showed higher cultural diversity compared to most nearby areas, with 22.1% born overseas and 20.0% speaking a language other than English at home. Christianity was the predominant religion in Watsonia, accounting for 48.8% of its population. Notably, Hinduism was overrepresented in Watsonia at 2.1%, higher than Greater Melbourne's 1.9%.

Among ancestry groups, Australian (23.9%), English (22.9%), and Irish (9.5%) were the most prevalent. Some ethnicities showed notable differences: Italian at 7.3% compared to 7.7% regionally; Macedonian at 1.2% versus 1.1%; Greek at 2.9% compared to 3.0%.

Watsonia's population is slightly older than the national pattern

The median age in Watsonia is 39 years, which is higher than Greater Melbourne's average of 37 years and close to the national average of 38 years. Compared to Greater Melbourne, the 75-84 age group is notably over-represented in Watsonia at 7.4%, while the 25-34 age group is under-represented at 13.1%. According to post-2021 Census data, the 75-84 age group has grown from 6.4% to 7.4% of Watsonia's population, whereas the 25-34 cohort has declined from 14.1% to 13.1%. Population forecasts for the year 2041 indicate significant demographic changes in Watsonia. Notably, the 45-54 age group is projected to grow by 38%, increasing from 1,189 people to 1,642 people.