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 is approximately 9,572 as of November 2025. This figure represents an increase of 336 people, a growth rate of 3.6%, since the 2021 Census which recorded 9,236 residents. The estimated resident population in June 2024 was 9,518, with an additional 52 validated new addresses since the census date contributing to this increase. This results in a population density 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 since the census is 3.6%, within 1.5 percentage points of the SA3 area's 5.1%, indicating competitive growth fundamentals. Overseas migration accounted for approximately 50.6% of overall population gains in recent periods.

AreaSearch adopts ABS/Geoscience Australia projections released in 2024 with a base year of 2022 for each SA2 area, and uses Victorian State Government's Regional/LGA projections from 2023 with adjustments made through weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group are applied across all areas for the years 2032 to 2041. Based on these projections, Watsonia is forecasted to experience a significant population increase in the top quartile of statistical areas analysed by AreaSearch, with an expected expansion of 2,930 persons by 2041, representing a total gain of 30.1% over the 17-year period.

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. Over the past five financial years, from FY21 to FY25, around 135 homes were approved, with an additional 9 approved so far in FY26. On average, about 0.1 person per year moved to the area for each dwelling built during this period.

This suggests that new construction is meeting or exceeding demand, providing more options for buyers and enabling population growth that could surpass current expectations. The average expected construction cost of these properties was $381,000. In FY26, there have been $23.6 million in commercial approvals, indicating steady commercial investment activity in the area. Compared to Greater Melbourne, Watsonia has significantly less development activity, at 57.0% below the regional average per person. This scarcity of new homes typically strengthens demand and prices for existing properties. New development in Watsonia consists of an equal split between detached dwellings (50.0%) and medium to high-density housing (50.0%). This focus on higher-density living creates more affordable entry points, suiting downsizers, investors, and first-home buyers.

This represents a significant shift from the current housing mix, which is predominantly houses (91.0%), reflecting reduced availability of development sites and addressing shifting lifestyle demands and affordability requirements. The location has approximately 488 people per dwelling approval, indicating an established area. Population forecasts suggest that Watsonia will gain around 2,876 residents by 2041. If current construction levels persist, housing supply may lag behind population growth, potentially intensifying buyer competition and underpinning price growth in the future.

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

Changes in local infrastructure significantly impact an area's performance. AreaSearch has identified seven projects likely to affect the region. Notable ones 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 those most relevant.

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

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

Watsonia has a highly educated workforce with significant representation in professional services. Its unemployment rate was 2.8% as of June 2025, compared to 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 an unemployment rate of 1.8% below Greater Melbourne's rate. Workforce participation in Watsonia is similar to Greater Melbourne's 64.1%. Leading employment industries include health care & social assistance, construction, and education & training.

Notably, health care & social assistance employs 1.2 times the regional average. Conversely, 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 comparing working population to resident population. Between June 2024 and June 2025, employment levels increased by 1.5% while labour force grew by 1.5%, keeping the unemployment rate stable at 2.8%. In contrast, Greater Melbourne recorded employment growth of 3.5% with labour force growth of 4.0% and a rise in unemployment to 5.1%. Jobs and Skills Australia's national employment forecasts from May 2025 project national employment growth of 6.6% over five years and 13.7% over ten years, but growth varies significantly between sectors. Applying these projections to Watsonia's employment mix suggests local growth of approximately 6.9% over five years and 14.2% over ten years.

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

AreaSearch's latest postcode level ATO data for financial year 2022 shows median income in Watsonia at $58,741 and average income at $70,096. This is higher than national averages of $53,824 (median) and $69,044 (average). In Greater Melbourne, the median income was $54,892 with an average of $73,761 in the same period. Based on a 12.16% increase since financial year 2022, estimated current incomes for Watsonia are approximately $65,884 (median) and $78,620 (average) as of September 2025. According to the 2021 Census, incomes in Watsonia cluster around the 63rd percentile nationally. Income distribution shows that 32.2% of individuals earn between $1,500 and $2,999 annually, consistent with the regional trend of 32.8%. After housing expenses, 86.2% of income remains for other expenses. Watsonia's SEIFA income ranking places it in the 7th decile nationally.

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

Watsonia's dwelling structure, as per the latest Census, consisted of 91.0% houses and 9.0% other dwellings. This compares to Melbourne metro's figures of 76.0% houses and 24.0% other dwellings. Home ownership in Watsonia stood at 38.5%, mirroring Melbourne metro's rate, with the remaining dwellings either mortgaged (38.4%) or rented (23.2%). The median monthly mortgage repayment was $2,037, lower than Melbourne metro's average of $2,167. Weekly rent in Watsonia was $390, compared to Melbourne metro's $399. Nationally, Watsonia's mortgage repayments were higher at $2,037 versus the Australian average of $1,863, while rents were also higher at $390 compared to 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 percent of all households, including 34.5 percent who are couples with children, 26.4 percent who are couples without children, and 11.7 percent who are single parent families. Non-family households make up the remaining 26.1 percent, with lone person households at 23.1 percent and group households comprising 3.1 percent of the total. The median household size is 2.6 people, which is larger than the Greater Melbourne average of 2.5.

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

Watsonia's educational qualifications trail regional benchmarks; 33.6% of residents aged 15+ hold university degrees compared to the SA3 area's 41.2%. Bachelor degrees are most common at 21.5%, followed by postgraduate qualifications (8.2%) and graduate diplomas (3.9%). Vocational credentials are prominent, with 31.1% of residents aged 15+ holding them; advanced diplomas account for 10.9% and certificates for 20.2%. Educational participation is high at 26.8%, including 9.3% in primary education, 6.6% in secondary education, and 4.9% pursuing tertiary education.

Watsonia's four schools have a combined enrollment of 2,073 students as of the latest data. The area has above-average socio-educational conditions with an ICSEA score of 1050. Education provision is balanced with three primary 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

The analysis of public transport in Watsonia shows that there are currently 54 active transport stops in operation. These include both train and bus services. The routes served by these stops total five, with a combined weekly passenger trip count of 3,814.

Residents enjoy excellent accessibility to transport, with an average distance of just 188 meters to the nearest stop. On average, there are 544 trips per day across all routes, which amounts 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. 68.1% of residents declared themselves completely clear of medical ailments, compared to 69.3% across Greater Melbourne. As of 2021, 19.8% of 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 shows high cultural diversity, with 22.1% born overseas and 20.0% speaking a language other than English at home. Christianity is the predominant religion in Watsonia, accounting for 48.8% of its population. Notably, Hinduism is overrepresented compared to Greater Melbourne, making up 2.1% versus 1.9%.

The top three ancestry groups are Australian (23.9%), English (22.9%), and Irish (9.5%). Some ethnic groups show notable variations in representation: Italian at 7.3% (regional average is 7.7%), Macedonian at 1.2% (versus 1.1%), and 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 slightly higher than Greater Melbourne's average of 37 years and very close to the national average of 38 years. Comparing with Greater Melbourne, Watsonia has a notably higher proportion of the 75-84 age group (7.4% locally) but a lower proportion of 25-34 year-olds (13.1%). According to data from the 2021 Census, the 75-84 age group has increased from 6.4% to 7.4% of Watsonia's population while the 25-34 cohort has decreased from 14.1% to 13.1%. Population forecasts for the year 2041 indicate significant demographic changes in Watsonia, with the 45-54 age group expected to grow by 38%, reaching a total of 1,642 people from the current figure of 1,189.