South Melbourne
At 5,273.3 residents per sq km on just 2.19 sq km, South Melbourne is a compact inner-city market shaped by apartments, renters and high incomes. Apartments make up 58.8% of dwellings and renters 56.5%, well above a typical family-house suburb such as Albert Park. The median house price is $1,643,800, yet the latest figure sits 12.7% below the 2022 peak, giving buyers more leverage than during the last cycle. Overseas-born residents are 37.4%, which is 15.8 percentage points above the national level, because the area draws mobile professionals close to the CBD, Southbank and Port Melbourne.
Population
11,548
Median Age
39.0
Household IncomeiMedian weekly household income (ABS Census)
$2,101/wk
DAs (12 months)iDevelopment Applications lodged in the past year
32
Median House
$1.6M
Apr-Jun 2024
Homebuyers are buying into scarcity rather than land size: separate houses are only 4.7% of stock, while apartments are 58.8% and semi-detached homes 35.6%. The median house price is $1,643,800, down 12.7% from the 2022 peak of $1,882,500, so conditions are softer than the last high point. Housing costs are not automatically stressful for established buyers, with mortgage payments at 24.2% of income and rent at 20.0%, because local household income sits in the 79.6 percentile. Bedroom mix also favours smaller households, with 46.5% being 2-bedroom homes and only 5.6% having 4 or more bedrooms.
For Buyers
Homebuyers are buying into scarcity rather than land size: separate houses are only 4.7% of stock, while apartments are 58.8% and semi-detached homes 35.6%. The median house price is $1,643,800, down 12.7% from the 2022 peak of $1,882,500, so conditions are softer than the last high point. Housing costs are not automatically stressful for established buyers, with mortgage payments at 24.2% of income and rent at 20.0%, because local household income sits in the 79.6 percentile. Bedroom mix also favours smaller households, with 46.5% being 2-bedroom homes and only 5.6% having 4 or more bedrooms.
For Investors
South Melbourne has clear rental depth, with 56.5% of homes rented compared with 43.5% owned outright or with a mortgage. The median rent is $421 per week and rent growth is 4.0%, but the 19.3% vacancy rate is high, so investors need to price and present stock carefully. Demand is supported by overseas migration averaging 414 people a year, which is higher than the net internal loss of 96 people a year. Development is active but not excessive, with 20 applications in 12 months, because the area is already dense and renewal often comes through smaller infill or subdivision rather than broad estates.
Development Activity
Total DAs
40
Last 12 Months
32
YoY ChangeiYear-over-year change in DA lodgements
+700.0%
Avg DA CostiAverage estimated cost per DA in the past year
N/A
Monthly DA Lodgements
DA Categories
Schools in South Melbourne iICSEA: school advantage index. 1000 = national avg, higher = more advantaged
Galilee Regional Catholic Primary School
Prep-6 · 369 students
Youth2Industry College
11-12 · 64 students
Demographics
South Melbourne is highly educated, internationally connected and compact. The median age is 39, which is 1.0 year lower than the national comparison, while 59.8% of residents hold a university qualification, 29.7 percentage points above national. Overseas-born residents account for 37.4%, also 15.8 points above national, supporting a mix that includes English ancestry at 3,702 people, Irish at 1,425 and Chinese at 871. Household size is 1.9, or 0.6 below national, because apartments and 1 to 2-bedroom homes dominate. Mandarin, Greek and Italian are visible community languages, with 154, 130 and 79 speakers respectively.
Age Distribution
Bedrooms
Dwelling Structure
4.7%
Houses
35.6%
Townhouse
58.8%
Apartment
Tenure
The housing market is expensive but no longer at its peak. Median house prices rose from $1,030,000 in 2013 to $1,643,800 in Apr-Jun 2024, a 59.6% gain and 3.4% compound growth over 14 years. The latest median is 12.7% below the 2022 peak of $1,882,500, which matters for buyers comparing South Melbourne with nearby Albert Park or Port Melbourne. Tenure is tilted to flexibility: 19.5% are owned outright, 24.0% have a mortgage and 56.5% rent. This pattern exists because 58.8% of dwellings are apartments and only 4.7% are separate houses, keeping turnover and investor ownership higher than in detached-house suburbs.
Median House Price Trend
Source: State Valuer-General (Apr-Jun 2024)
Mortgage / mo
$2,200
Rent / wkiMedian weekly rent for new bonds (year ending Sep 2025), Homes Victoria bond data (year-ending median). Census 2021 median: $421.
$650
Bond data year ending Sep 2025 · houses $950 · units $700
HH Size
1.9
Personal Income / wk
$1,307
Vacancy Ratei% of dwellings unoccupied on Census night (ABS 2021)
19.3%
Unoccupied
1,328
Rent / IncomeiMedian rent as % of household income. Over 30% = housing stress
20.0%
Mortgage / IncomeiMedian mortgage as % of household income. Over 30% = housing stress
24.2%
Community Profile
Languages Spoken at Home
Ancestry
Household Composition
42.8%
Couples, no children
7,181
Total families
Economy & Employment
South Melbourne ranks strongly for skills and occupations, but resources are uneven. Professional and tech work leads at 22.6% with 1,207 workers, followed by healthcare at 11.2%, finance at 9.4%, education at 8.4% and public admin at 6.6%. Professionals number 2,679 and managers 1,416, which helps explain the IEO decile 10 and IRSAD decile 9. The contrast is the IER decile 2, lower than those education rankings, because a renter-heavy, apartment-dominant population can include students, recent arrivals and lower-wealth households despite high-income occupations. Unemployment is 5.4% and participation is 64.7%, with 73.3% of employed residents working full time.
Unemployment
7.0%
Labour Force
8,787
Unemployed
611
Quarterly Trend
Source: SALM Dec-25
Socio-Economic Indexes (SEIFA)iABS index ranking suburbs from 1 (most disadvantaged) to 10 (most advantaged)
Full-time
73.3%
Part-time
21.3%
Participation
64.7%
Employed
6,251
Occupations
Top Industries
University
59.8%
Postgraduate
18.8%
Born Overseas
37.4%
Dwellings
5,526
Transport to Work
Livability is strongest for people who value proximity, walking and services over detached space. A high 32.0% walk or cycle to work, compared with 2.2% using public transport and 61.1% driving, because daily needs and CBD-edge jobs are close. There are 2 local schools, spanning ICSEA 1033 to 1154: Galilee Regional Catholic Primary School is the stronger mainstream primary option at ICSEA 1154 with 369 students, while Youth2Industry College adds a small Independent secondary pathway with 64 students. IRSAD decile 9 points to high advantage, but safety needs context: the crime rate is 235.1 per 1,000, with 2,715 total offences and 1,892 property and deception offences.
Drive
61.1%
Public Transport
2.2%
Walk / Cycle
32.0%
Work from Home
N/A
Population Forecast
+1.11%/yr
(+146 people/yr)
EstablishedGrowth is steady rather than explosive. The forecast trend adds 1.11% a year, or about 146 people annually, taking the medium population path from 13,174 in 2026 to 13,903 by 2031. Overseas migration is the main driver at 414 net people a year, higher than the internal migration loss of 96, so turnover is likely to stay more international than suburban. The area recovered from a 7.1% COVID dip, with population now 8.2% above the low point. Ageing is also part of the story: senior share is up 3.1 points and working share down 1.0 point. Gentrification is labelled Early signs with a score of 29, because values are already high and change is more incremental.
Historical + Forecast
Hamilton-Perry + Holt smoothing on ERP 2001-2025
Age Cohort Forecast
Primary Driver
Overseas Migration
Net Overseas / yr
+414
Net Internal / yr
-96
Gentrification Signal
Early signs
Population +27% since 2011, Strong overseas inflow +414/yr, COVID recovered (-7% dip → full recovery)
Safety & Crime
Total Offences
2,715
Year ending June 2024
Rate per 1,000 People
235.1
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 South Melbourne compares to ~15,000 Australian suburbs
Frequently Asked Questions
Is South Melbourne a good suburb to live in?
Yes for buyers and renters who prioritise walkability, inner-city access and services. About 32.0% walk or cycle to work and the area ranks in IRSAD decile 9, although the 235.1 offences per 1,000 crime rate means apartment security and street-by-street checks matter.
What is the median house price in South Melbourne?
The median house price is $1,643,800 for Apr-Jun 2024. That is 12.7% below the 2022 peak of $1,882,500, but still well above the 2013 median of $1,030,000, reflecting scarce house stock in a dense inner-city suburb.
What schools are in South Melbourne?
South Melbourne has 2 listed local schools. Galilee Regional Catholic Primary School has ICSEA 1154 and 369 students, while Youth2Industry College is an Independent secondary school with ICSEA 1033 and 64 students.
Is South Melbourne safe?
Safety is mixed. The suburb recorded 2,715 offences and a crime rate of 235.1 per 1,000 people, with property and deception offences the largest category at 1,892 incidents. The rate is high, so secure parking, building access and exact location are important.
Is South Melbourne good for property investment?
It can suit investors seeking renter demand, because 56.5% of homes are rented and overseas migration averages 414 net people a year. The caution is the 19.3% vacancy rate, which is high, so yield, presentation and leasing competition need close attention.
How is South Melbourne's population changing?
Population growth is forecast at 1.11% a year, or about 146 people annually. The medium path reaches 13,903 by 2031, supported mainly by overseas migration at 414 net people a year despite a net internal loss of 96 people a year.
What languages are spoken in South Melbourne?
South Melbourne is more internationally mixed than the national average, with 37.4% of residents born overseas. Common non-English languages include Mandarin with 154 speakers, Greek with 130, Italian with 79, Russian with 67 and Cantonese with 63.
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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