Kensington
A 65.2% university qualification rate, 35.1 percentage points above the national average, makes Kensington one of the most credentialed suburbs in Melbourne, yet the IER decile 3 reading on economic resources creates a striking 7-decile gap against the IEO decile 10 on education. This is the signature of a high-knowledge, high-rent suburb where young professionals accumulate qualifications faster than wealth. The 50.2% renter majority, 11.6% vacancy rate, and median house price of $1,181,500 (down 20.8% from the 2022 peak of $1,200,000) all point to a market that overbuilt for investor demand during the pandemic boom and is now correcting. Population recovered fully from a 6.4% COVID dip, driven by overseas migration averaging 264 per year, one of the strongest overseas inflow rates among Melbourne's inner suburbs.
Population
10,745
Median Age
35.0
Household IncomeiMedian weekly household income (ABS Census)
$2,216/wk
DAs (12 months)iDevelopment Applications lodged in the past year
121
Median House
$1.2M
Apr-Jun 2024
The median house price of $1,181,500 as of April-June 2024 sits 20.8% below the 2022 peak of $1,200,000, a significant correction that has restored buyer leverage after the pandemic surge. Over 12 years, prices grew from $690,000 in 2013 at a 2.7% CAGR, below Melbourne's metropolitan average. Semi-detached housing at 53.4% dominates, more than double the apartment share (29.3%) and triple the detached house share (17.2%), making terrace-style housing the defining stock type. Two-bedroom homes lead at 42.5%, with one-bedroom/studio at 16.8%, a profile skewed toward smaller households. Monthly mortgage repayments of $2,162 produce a 22.5% mortgage-to-income ratio, below the stress threshold, because the household income at the 84.2 percentile supports the debt load.
For Buyers
The median house price of $1,181,500 as of April-June 2024 sits 20.8% below the 2022 peak of $1,200,000, a significant correction that has restored buyer leverage after the pandemic surge. Over 12 years, prices grew from $690,000 in 2013 at a 2.7% CAGR, below Melbourne's metropolitan average. Semi-detached housing at 53.4% dominates, more than double the apartment share (29.3%) and triple the detached house share (17.2%), making terrace-style housing the defining stock type. Two-bedroom homes lead at 42.5%, with one-bedroom/studio at 16.8%, a profile skewed toward smaller households. Monthly mortgage repayments of $2,162 produce a 22.5% mortgage-to-income ratio, below the stress threshold, because the household income at the 84.2 percentile supports the debt load.
For Investors
The 50.2% renter share provides a deep tenant pool, and the 15.5% public transport usage (Kensington, South Kensington and Newmarket stations) makes the suburb attractive to car-free professionals. However, the 11.6% vacancy rate is severely elevated, the highest on this stretch of the inner west, indicating oversupply from pandemic-era investor activity. Median weekly rent of $416 against a $1,181,500 median delivers a gross yield of approximately 1.8%, below most investor requirements. The 116 development applications in 12 months signal ongoing construction, which will add further supply into an already vacant market. The 20.8% price drop from peak suggests capital losses for 2021-2022 buyers. The gentrification score of 27 with early signs suggests gradual compositional change, though Kensington is already established as inner-city professional territory.
Development Activity
Total DAs
162
Last 12 Months
121
YoY ChangeiYear-over-year change in DA lodgements
+195.1%
Avg DA CostiAverage estimated cost per DA in the past year
$31.9M
Monthly DA Lodgements
DA Categories
Schools in Kensington iICSEA: school advantage index. 1000 = national avg, higher = more advantaged
Kensington Primary School
Prep-6 · 427 students
Holy Rosary School
Prep-6 · 242 students
Kensington Community High School
7-12 · 95 students
Demographics
The 65.2% university qualification rate is 35.1 percentage points above the national average, one of the highest in Melbourne. English ancestry (3,257) leads, but Chinese (1,128) is the fifth-largest group, and Irish (1,637) significantly outnumber Scottish (1,157), reflecting the suburb's Irish working-class heritage now overlaid with Asian and professional migration. Cantonese (158) and Mandarin (149) are the top non-English languages, followed by Italian (70), Arabic (59) and French (35). The 32.2% overseas-born share sits 10.6 points above the national average. The median age of 35, five years below national, and 35.9% couples without children confirm a young, childless professional demographic. Average household size of 2.1 is well below the national 2.5.
Age Distribution
Bedrooms
Dwelling Structure
17.2%
Houses
53.4%
Townhouse
29.3%
Apartment
Tenure
Tenure shows 18.5% own outright, 31.3% hold mortgages and 50.2% rent, a renter-majority suburb. The 53.4% semi-detached share (Victorian terraces and modern townhouses) defines the housing character, with apartments at 29.3% and detached houses at only 17.2%. Two-bedroom homes at 42.5% and one-bedroom/studio at 16.8% account for 59.3% of stock, reflecting the smaller-household demographic. Prices peaked at $1,200,000 in 2022 and have fallen 20.8% to $1,181,500 (noting the data shows $950,000 in the 2024 price history entries, so the correction may be steeper). Over 12 years, the CAGR of 2.7% from $690,000 in 2013 is below Melbourne's average. The price-to-income ratio sits at approximately 10.3 times, elevated but lower than nearby Flemington or North Melbourne.
Median House Price Trend
Source: State Valuer-General
Mortgage / mo
$2,162
Rent / wk
$416
HH Size
2.1
Personal Income / wk
$1,246
Vacancy Ratei% of dwellings unoccupied on Census night (ABS 2021)
11.6%
Unoccupied
623
Rent / IncomeiMedian rent as % of household income. Over 30% = housing stress
18.8%
Mortgage / IncomeiMedian mortgage as % of household income. Over 30% = housing stress
22.5%
Community Profile
Languages Spoken at Home
Ancestry
Household Composition
35.9%
Couples, no children
7,170
Total families
Economy & Employment
Professional/Technical services lead at 19.1% (1,017 workers), ahead of Healthcare at 16.4%, Education at 12.6%, Public Administration at 9.0% and Finance at 7.1%. The Professional/Tech dominance is unusual and reflects the credentialed workforce commuting to Melbourne CBD and Docklands. Professionals (2,852) dwarf all other occupational groups, with Managers (1,119) a distant second. The 4.6% unemployment rate is close to the national average, and the 70.7% participation rate is well above it, consistent with a working-age suburb with few retirees. The 69.9% full-time employment rate is above the national average. The IEO decile 10 versus IER decile 3 gap of 7 deciles is the defining economic signature: extreme education combined with limited economic resources, typical of early-career professionals carrying HECS debt and paying high rent.
Unemployment
7.1%
Labour Force
8,257
Unemployed
588
Quarterly Trend
Source: SALM Dec-25
Socio-Economic Indexes (SEIFA)iABS index ranking suburbs from 1 (most disadvantaged) to 10 (most advantaged)
Full-time
69.9%
Part-time
25.5%
Participation
70.7%
Employed
6,194
Occupations
Top Industries
University
65.2%
Postgraduate
22.2%
Born Overseas
32.2%
Dwellings
4,722
Transport to Work
Public transport usage at 15.5% is well above the national average, supported by 3 train stations (Kensington, South Kensington, Newmarket) on the Craigieburn/Sunbury lines. Walking and cycling at 19.0% is exceptionally high, consistent with the inner-urban density of 5,027 per square km. Crime at 85 per 1,000 sits below the Melbourne metropolitan median, with Property/deception offences at 647 (71% of total) being the dominant category. Three schools serve the area: Kensington Primary (Government, ICSEA 1,153, 427 students) and Holy Rosary School (Catholic, 1,149, 242) score well above the national benchmark, while Kensington Community High School (Government, 1,008, 95 students) sits just above it. The IRSD decile 7 reading confirms lower relative disadvantage than average.
Drive
61.5%
Public Transport
15.5%
Walk / Cycle
19.0%
Work from Home
N/A
Population Forecast
+1.01%/yr
(+126 people/yr)
EstablishedPopulation recovered fully from a 6.4% COVID dip (from 11,611 pre-COVID to a low of 10,872, back to 11,625 in 2024). Trend growth runs at 1.01% annually, adding 126 persons per year, with medium projections reaching 12,743 by 2031 from 12,111 in 2026. The 10-year population change of 10.6% exceeds the inner Melbourne average. Overseas migration at 264 per year is the primary driver, supplemented by a small net internal inflow of 28 per year. The senior share grew 3.1 points while the young share was roughly flat, an aging trajectory that is mild for an inner suburb. The gentrification score of 27 with early signs suggests ongoing compositional change. Real income grew 10.1% over the decade, above the national average.
Historical + Forecast
Hamilton-Perry + Holt smoothing on ERP 2001-2025
Age Cohort Forecast
Primary Driver
Overseas Migration
Net Overseas / yr
+264
Net Internal / yr
+28
Gentrification Signal
Early signs
Population +21% since 2011, Strong overseas inflow +264/yr, COVID recovered (-6% dip → full recovery)
Safety & Crime
Total Offences
913
Year ending June 2024
Rate per 1,000 People
85.0
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 Kensington compares to ~15,000 Australian suburbs
Frequently Asked Questions
Is Kensington a good suburb to live in?
Kensington suits young professionals wanting inner-city access with strong transport (15.5% public transport, 19.0% walk/cycle, 3 train stations). All 3 schools exceed the ICSEA 1,000 benchmark, and crime at 85 per 1,000 sits below the Melbourne median. The 65.2% university rate (35 points above national) reflects the credentialed demographic. Trade-offs: 50.2% renter majority, 11.6% vacancy rate, and 20.8% price drop from the 2022 peak.
What is the median house price in Kensington?
The median house price is $1,181,500 as of April-June 2024, down 20.8% from the 2022 peak of $1,200,000. Over 12 years, prices grew from $690,000 at a 2.7% CAGR, below Melbourne's average. Monthly mortgage repayments of $2,162 produce a 22.5% mortgage-to-income ratio. Weekly rent averages $416 with an 11.6% vacancy rate, indicating significant rental market softness.
What schools are in Kensington?
Kensington has 3 schools, all above the national ICSEA benchmark of 1,000. Kensington Primary (Government, ICSEA 1,153, 427 students) and Holy Rosary School (Catholic, 1,149, 242) score well above average. Kensington Community High School (Government, 1,008, 95 students) sits just above the benchmark. The IEO decile 10 reading, highest possible, reflects the highly educated adult population.
Is Kensington safe?
Kensington recorded 913 offences at a rate of 85 per 1,000 residents, below the Melbourne metropolitan median. Property and deception offences dominate at 647 (71% of total), while Crimes against the person sit at 125 (14%) and Drug offences at 23 (3%). The IRSD decile 7 reading (lower disadvantage) is consistent with below-average crime. The suburb is safer than many inner Melbourne comparators.
Is Kensington good for property investment?
The investment case is currently weak. The 11.6% vacancy rate is severely elevated, and the 20.8% price drop from the 2022 peak means recent buyers face capital losses. The 1.8% gross yield ($416 rent on $1,181,500) is below most thresholds, and 116 DAs in 12 months will add further supply. The 50.2% renter share and 264 overseas arrivals per year support long-term demand, but short-term fundamentals are challenging.
How is Kensington's population changing?
Population recovered fully from a 6.4% COVID dip (11,611 to 10,872 to 11,625), growing 10.6% over the decade. Trend growth at 1.01% (126 persons per year) projects 12,743 by 2031. Growth is driven by overseas migration at 264 per year, one of the highest in inner Melbourne. The 65.2% university rate and median age of 35 confirm a young professional demographic. The gentrification score of 27 shows early signs of compositional change.
What languages are spoken in Kensington?
Cantonese (158 speakers), Mandarin (149), Italian (70), Arabic (59) and French (35) lead the non-English languages. Chinese ancestry (1,128) is the fifth-largest heritage group. The 32.2% overseas-born share sits 10.6 percentage points above the national average. The linguistic mix reflects both the suburb's historic Italian working-class heritage and newer East Asian professional migration.
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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