Forest Hill
Chinese ancestry (2,870) outnumbers English (2,415) as the largest group in Forest Hill, a demographic tipping point that only a handful of Melbourne's eastern suburbs have crossed. Mandarin (702 speakers) and Cantonese (374) together exceed 1,000, making Chinese languages the dominant non-English group. Yet household income sits at just the 57.4 percentile nationally, well below what the $1,185,000 median house price would suggest, creating a price-to-income stretch that explains the 29.6% mortgage-to-income ratio, nearly at the stress line. SEIFA places Forest Hill at IEO decile 8 (strong education, 52.8% university-qualified) but IER decile 5 (median economic resources), a 3-decile gap typical of credentialed migrant suburbs.
Population
10,780
Median Age
42.0
Household IncomeiMedian weekly household income (ABS Census)
$1,658/wk
DAs (12 months)iDevelopment Applications lodged in the past year
3
Median House
$1.2M
Apr-Jun 2024
The $1,185,000 median sits 82.2% above the 2013 figure of $650,500, compounding at 4.4% per year over 14 years. However, prices peaked at $1,325,000 in late 2023 and have since declined 10.6%, a correction that opens buying opportunities. Detached houses account for 72.0% of stock, with semi-detached at 24.9% reflecting active subdivision. Three-bedroom homes dominate at 48.0%, with four-plus at 31.4%. Monthly mortgage repayments of $2,123 produce a mortgage-to-income ratio of 29.6%, sitting very close to the 30% stress boundary. The household income percentile of 57.4 means local incomes are only slightly above average, making servicing these mortgage levels challenging for new entrants. Parkmore Primary (ICSEA 1,095) is the sole school within the suburb.
For Buyers
The $1,185,000 median sits 82.2% above the 2013 figure of $650,500, compounding at 4.4% per year over 14 years. However, prices peaked at $1,325,000 in late 2023 and have since declined 10.6%, a correction that opens buying opportunities. Detached houses account for 72.0% of stock, with semi-detached at 24.9% reflecting active subdivision. Three-bedroom homes dominate at 48.0%, with four-plus at 31.4%. Monthly mortgage repayments of $2,123 produce a mortgage-to-income ratio of 29.6%, sitting very close to the 30% stress boundary. The household income percentile of 57.4 means local incomes are only slightly above average, making servicing these mortgage levels challenging for new entrants. Parkmore Primary (ICSEA 1,095) is the sole school within the suburb.
For Investors
Renters make up 26.6% of households with median weekly rent at $396, producing gross yield around 1.7% on the $1,185,000 median, below typical investor thresholds. The vacancy rate of 7.3% is elevated and well above the 3% balanced-market benchmark. Rent growth of 27.3% over the decade is moderate. Net overseas migration averages 238 per year, providing the main demand source, while internal migration runs negative at 136 per year. Just 1 DA was lodged in 12 months, an unusually low figure that may reflect data collection issues or genuine development dormancy. The gentrification score of 20 with early signs, and the full COVID recovery, suggest some upside but the yield maths are challenging.
Development Activity
Total DAs
15
Last 12 Months
3
YoY ChangeiYear-over-year change in DA lodgements
0.0%
Avg DA CostiAverage estimated cost per DA in the past year
N/A
Monthly DA Lodgements
DA Categories
Schools in Forest Hill iICSEA: school advantage index. 1000 = national avg, higher = more advantaged
Parkmore Primary School
Prep-6 · 121 students
Demographics
Chinese ancestry dominates at 2,870, ahead of English (2,415), Irish (798) and Scottish (747). With 43.8% born overseas, the suburb sits 22.2 percentage points above the national average. Mandarin (702) and Cantonese (374) together account for over 1,000 speakers, with Greek (137), Sinhala (84) and Hindi (77) following. The 52.8% university qualification rate is 22.7 points above national, yet household income sits at only the 57.4 percentile. This credential-income gap reflects a large population of recent migrants in credential-intensive but not yet high-paying roles. The median age of 42 is 2 years above national. Buddhism (745) and Hinduism (341) are significant alongside Christianity (4,470). Average household size of 2.5 matches the national figure.
Age Distribution
Bedrooms
Dwelling Structure
72.0%
Houses
24.9%
Townhouse
3.1%
Apartment
Tenure
The tenure split shows 39.5% outright owners, 33.9% mortgage holders, and 26.6% renters, weighted toward ownership but with a meaningful rental segment. The 14-year price history tells a familiar Melbourne story: 82.2% gain from $650,500 in 2013, peaking at $1,325,000 in late 2023, then pulling back 10.6% to $1,185,000. This 4.4% CAGR is slightly below the Melbourne average. Detached houses at 72.0% dominate, but semi-detached at 24.9% signals that subdivision is well advanced. Three-bedroom stock at 48.0% dominates, consistent with the original 1960s-70s housing stock. The price-to-income ratio works out to roughly 13.8 times annual household income, stretched for the income tier and above the 5-to-6 times historical affordability benchmark.
Median House Price Trend
Source: State Valuer-General
Mortgage / mo
$2,123
Rent / wk
$396
HH Size
2.5
Personal Income / wk
$706
Vacancy Ratei% of dwellings unoccupied on Census night (ABS 2021)
7.3%
Unoccupied
320
Rent / IncomeiMedian rent as % of household income. Over 30% = housing stress
23.9%
Mortgage / IncomeiMedian mortgage as % of household income. Over 30% = housing stress
29.6%
Community Profile
Languages Spoken at Home
Ancestry
Household Composition
23.6%
Couples, no children
8,589
Total families
Economy & Employment
Healthcare leads at 16.6% (608 workers), followed by Professional/Technical at 13.9%, Education at 12.2%, Retail at 8.2% and Finance at 6.8%. This service-sector mix is typical of Melbourne's eastern suburbs. Professionals lead occupations at 1,527, with Clerical/Admin (695) and Managers (652) following. Unemployment at 5.7% is slightly above the national average, and participation at 54.3% is below average, reflecting the large number of retirees (39.5% outright owners, median age 42) and possibly international students. The SEIFA profile shows IEO decile 8 and IER decile 5, a gap that reinforces the credential-income disconnect. IRSAD decile 7 and IRSD decile 6 indicate above-average but not elite advantage.
Unemployment
3.9%
Labour Force
5,772
Unemployed
227
Quarterly Trend
Source: SALM Dec-25
Socio-Economic Indexes (SEIFA)iABS index ranking suburbs from 1 (most disadvantaged) to 10 (most advantaged)
Full-time
62.3%
Part-time
32.0%
Participation
54.3%
Employed
4,624
Occupations
Top Industries
University
52.8%
Postgraduate
16.2%
Born Overseas
43.8%
Dwellings
4,083
Transport to Work
Car dependence is high at 86.1% driver share, with public transport at 5.0% and walking/cycling at 3.1%, reflecting bus-only access without a nearby train station. Crime totalled 818 incidents at a rate of 75.9 per 1,000, above the Melbourne metropolitan median. Property and deception offences dominate at 499 (61.0%), with crimes against the person at 116 and justice procedures at 104. The sole school, Parkmore Primary (ICSEA 1,095, 121 students), sits well above the national benchmark but its small enrolment limits options. The IRSAD decile 7 and mortgage stress at 29.6% indicate a suburb where families are comfortable but stretched relative to their income level.
Drive
86.1%
Public Transport
5.0%
Walk / Cycle
3.1%
Work from Home
N/A
Population Forecast
+0.41%/yr
(+46 people/yr)
EstablishedPopulation growth of 0.41% per year adds 46 people annually, well below the national average. The 10-year change of 7.2% is moderate. The suburb experienced a mild 3.0% COVID dip but has fully recovered. Net overseas migration of 238 per year drives growth, offset by internal outflow of 136 per year, the classic pattern of an established eastern suburb receiving international arrivals who eventually move outward. The demographic trajectory is stable, with the senior share growing by just 0.1 percentage points over the decade and the working-age share increasing by 0.4 points. Real income growth of 7.7% over the decade is modest, barely above inflation.
Historical + Forecast
Hamilton-Perry + Holt smoothing on ERP 2001-2025
Age Cohort Forecast
Primary Driver
Overseas Migration
Net Overseas / yr
+238
Net Internal / yr
-136
Gentrification Signal
Early signs
Net internal outflow -136/yr, Strong overseas inflow +238/yr, COVID recovered (-3% dip → full recovery)
Safety & Crime
Total Offences
818
Year ending June 2024
Rate per 1,000 People
75.9
Offence Categories
Source: Crime Statistics Agency Victoria / SA Police
National Ranking iPercentile rank among ~15,000 AU suburbs. 90% = higher than 90% of suburbs
How Forest Hill compares to ~15,000 Australian suburbs
Frequently Asked Questions
Is Forest Hill a good suburb to live in?
Forest Hill suits buyers wanting Melbourne's eastern suburbs with established homes and strong Chinese community infrastructure. Parkmore Primary has an ICSEA of 1,095, well above national. Mortgage stress at 29.6% is close to the threshold. The crime rate of 75.9 per 1,000 is above the Melbourne median. IRSAD decile 7 confirms above-average advantage.
What is the median house price in Forest Hill?
The median is $1,185,000 (Apr-Jun 2024), down 10.6% from the peak of $1,325,000 in late 2023. Over 14 years, prices grew 82.2% from $650,500, compounding at 4.4% per year. Median weekly rent is $396 and monthly mortgage repayments are $2,123, producing a mortgage-to-income ratio of 29.6%.
What schools are in Forest Hill?
Forest Hill has 1 school: Parkmore Primary (ICSEA 1,095, Government, 121 students), sitting well above the national benchmark of 1,000. The small enrolment limits choice within the suburb. The IEO decile 8 confirms strong adult education attainment in the area, with 52.8% holding university qualifications.
Is Forest Hill safe?
Forest Hill recorded 818 offences at 75.9 per 1,000 residents, above the Melbourne metropolitan median. Property and deception offences dominate at 499 (61.0%), crimes against the person at 116, and drug offences at 61. The IRSD decile 6 places the suburb slightly above average for disadvantage, consistent with moderate crime levels.
Is Forest Hill good for property investment?
Gross yield is roughly 1.7% ($396/week on $1,185,000), below typical thresholds. The vacancy rate of 7.3% is elevated. Prices are down 10.6% from the 2023 peak. Just 1 DA in 12 months suggests limited new supply. The 14-year CAGR of 4.4% is stable but below the Melbourne average. The large Chinese community provides a distinct tenant demographic.
How is Forest Hill's population changing?
Growth is slow at 0.41% per year (46 persons), with the 10-year change at 7.2%. Net overseas migration of 238 per year drives growth, offset by 136 internal departures. The demographic profile is stable: senior share grew by only 0.1 percentage points over the decade. The suburb fully recovered from a 3.0% COVID dip.
What languages are spoken in Forest Hill?
Mandarin (702) and Cantonese (374) together exceed 1,000 speakers, dominating non-English languages. Greek (137), Sinhala (84) and Hindi (77) follow. With 43.8% born overseas (22.2 points above national), Forest Hill is one of Melbourne's most linguistically Chinese-influenced suburbs. Chinese ancestry (2,870) outnumbers English (2,415).
How to read these comparisons
Phrases like "above the national average" reference the unweighted median across Australian suburbs with more than 1,000 residents, not population-weighted national figures. Suburb-level medians are more useful for ranking suburbs against each other; ABS census headlines are population-weighted (so dominated by Sydney and Melbourne) and can read very differently.
Current baseline (refreshed 2026-05-10): median age 40, university-educated 30.1%, born overseas 21.6%, average household size 2.5 people.
Data sources: ABS 2021 Census (demographics, income, tenure), state Valuer-General (house prices), Department of Jobs SALM (unemployment), ACARA (school ICSEA), state Crime Statistics agencies (offences), council DA portals (development applications). Population forecasts use a Hamilton-Perry cohort model calibrated to ABS ERP.
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