Watsonia

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, as of November 2025, is approximately 9,572, reflecting an increase of 336 people since the 2021 Census. The population in 2021 was recorded at 9,236. This growth of 3.6% from 2021 to November 2025 is inferred from ABS estimates and validated new addresses. As of June 2024, the estimated resident population was 9,518. The additional 52 validated new addresses contributed to the population increase since the Census date. This results in a population density ratio of 2,525 persons per square kilometer, placing Watsonia in the upper quartile nationally according to AreaSearch's assessments.

Comparing growth rates, Watsonia's 3.6% increase since the Census is within 1.5 percentage points of its SA3 area (5.1%), indicating competitive growth fundamentals. Overseas migration contributed approximately 50.6% of overall population gains during recent periods in Watsonia. 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 employs the VIC State Government's Regional/LGA projections released in 2023, adjusting using weighted aggregation from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future population trends anticipate a significant increase in Watsonia, with an expected expansion of 2,930 persons by 2041 based on the latest annual ERP population numbers. This reflects a total gain of 30.1% over the 17-year period from November 2025 to 2041.

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 approved approximately 27 residential properties annually. Over the past five financial years, from FY-21 to FY-25, a total of 135 homes were approved, with an additional 9 approved so far in FY-26. On average, about 0.1 person per year moved to the area for each dwelling built during these five years.

This suggests that new construction is meeting or exceeding demand, providing more options for buyers and facilitating population growth that may surpass current projections. The average expected construction cost of new properties is $381,000. In FY-26, there have been approximately $23.6 million in commercial approvals, indicating consistent commercial investment activity in the area. Compared to Greater Melbourne, Watsonia has significantly less development activity, with 57.0% fewer approvals per person than the regional average. 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, appealing to 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 changing lifestyle demands and affordability requirements. As of now, Watsonia has approximately 488 people per dwelling approval, indicating an established area. According to the latest AreaSearch quarterly estimate, Watsonia is projected to gain 2,876 residents by 2041. If current construction levels persist, housing supply may lag behind population growth, potentially intensifying buyer competition and supporting price growth.

Watsonia has moderate levels of nearby infrastructure activity, ranking in the 47thth percentile nationally

Changes in local infrastructure significantly impact an area's performance. AreaSearch has identified seven projects that could affect this region. Notable ones include the 149 McKimmies Road Residential Precinct, M80 Ring Road Completion, Uni Hill Factory Outlets Stage 3A, and Diamond Creek Community Infrastructure Master Plan. The following list details those most likely to be relevant.

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

Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Please follow links and conduct other investigations from the project's source for actual imagery. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

Employment performance in Watsonia exceeds national averages across key labour market indicators

Watsonia has an educated workforce with professional services well-represented, an unemployment rate of 3.1%, and stable employment over the past year. As of September 2025, 5,222 residents are employed while the unemployment rate is 1.6% lower than Greater Melbourne's 4.7%.

Workforce participation in Watsonia is similar to Greater Melbourne's 64.1%. The leading employment industries are health care & social assistance, construction, and education & training, with a specialization in health care & social assistance at 1.2 times the regional level. Accommodation & food services are under-represented, with only 4.4% of Watsonia's workforce compared to Greater Melbourne's 6.4%. The area offers limited local employment opportunities as indicated by Census data.

From September 2024 to September 2025, the labour force increased by 0.2%, but employment declined by 0.1%, causing unemployment to rise by 0.3 percentage points. In comparison, Greater Melbourne had employment growth of 3.0% and labour force growth of 3.3%. State-level data from 25-Nov-25 shows VIC employment grew by 1.13% year-on-year, with an unemployment rate of 4.7%, compared to the national rate of 4.3%. Jobs and Skills Australia's forecasts indicate national employment will expand by 6.6% over five years and 13.7% over ten years, but growth rates vary between sectors. Applying these projections to Watsonia's employment mix suggests local employment should increase by 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 that median income in Watsonia SA2 is $58,741 and average income stands at $70,096. This contrasts with Greater Melbourne's median income of $54,892 and average income of $73,761. Based on a 12.16% increase in Wage Price Index since financial year 2022, estimated current incomes are approximately $65,884 (median) and $78,620 (average) as of September 2025. According to the 2021 Census, household, family, and personal incomes in Watsonia cluster around the 62nd percentile nationally. Income distribution shows that 32.2% of individuals earn between $1,500 and $2,999, consistent with broader regional trends. After housing costs, 86.2% of income remains for other expenses. The area'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

The dwelling structure in Watsonia, as per the latest Census, consisted of 91.0% houses and 9.0% other dwellings such as semi-detached homes, apartments, and 'other' dwellings. This is compared to Melbourne metro's 76.0% houses and 24.0% other dwellings. Home ownership in Watsonia was at 38.5%, similar to Melbourne metro's level, with the rest of dwellings either mortgaged (38.4%) or rented (23.2%). The median monthly mortgage repayment in the area was $2,037, lower than Melbourne metro's average of $2,167. Meanwhile, the median weekly rent figure was recorded at $390, compared to Melbourne metro's $399. Nationally, Watsonia's mortgage repayments were higher than the Australian average of $1,863, while rents exceeded 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, 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

Educational qualifications in Watsonia trail regional benchmarks, with 33.6% of residents aged 15+ holding university degrees compared to 41.2% in SA3 area. Bachelor degrees lead at 21.5%, followed by postgraduate qualifications (8.2%) and graduate diplomas (3.9%). Trade and technical skills feature prominently, with 31.1% of residents aged 15+ holding vocational credentials – advanced diplomas (10.9%) and certificates (20.2%). Educational participation is notably high, with 26.8% of residents currently enrolled in formal education.

This includes 9.3% in primary education, 6.6% in secondary education, and 4.9% pursuing tertiary education.

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

The analysis of public transportation in Watsonia indicates that there are 54 active transport stops currently operating. These stops offer a mix of train and bus services. There are five individual routes servicing these stops, collectively providing 3,814 weekly passenger trips.

The accessibility of transport is rated as excellent, with residents typically located 188 meters from the nearest transport stop. On average, there are 544 trips per day across all routes, equating 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.

The level of cultural diversity witnessed in Watsonia was found to be slightly above average when compared nationally for a number of language and cultural background related metrics

Watsonia's cultural diversity exceeds the average, with 22.1% of residents 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 the population. Notably, Hinduism is more prevalent in Watsonia at 2.1%, compared to Greater Melbourne's 1.9%.

The top three ancestry groups are Australian (23.9%), English (22.9%), and Irish (9.5%). Some ethnic groups show notable differences: Macedonian is slightly overrepresented at 1.2% in Watsonia, while Italian stands at 7.3% and Greek at 2.9%.

Watsonia's population aligns closely with national norms in age terms

The median age in Watsonia is 39 years, which is higher than Greater Melbourne's average of 37 years and very close to the national average of 38 years. Compared to Greater Melbourne, the 75-84 age group is notably over-represented in Watsonia, making up 7.4% of the local population, 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%, and the 25-34 age group has declined from 14.1% to 13.1%. Population forecasts for the year 2041 indicate significant demographic changes in Watsonia, with the 45-54 age group projected to grow by 38%, reaching 1,642 people from its current figure of 1,189.