Melbourne is closing in on the title of Australia’s biggest city, with new data showing it is growing faster than Sydney and could overtake it within the next decade.
The latest figures from the Australian Bureau of Statistics reveal Melbourne’s population increased by 105,030 people in the 2024 to 2025 financial year, marking a growth rate of 2 per cent. That surge has pushed the city’s population to 5,435,590 as of June 2025, narrowing the gap with Sydney.
If current trends continue, Melbourne is on track to become the country’s largest city by 2032, driven by a combination of overseas migration and natural population growth.
A significant portion of that increase came from a natural rise in births, which added 32,146 people, the highest figure recorded nationally. Overseas migration also played a major role in the city’s expansion, offsetting a net loss of 8,554 residents to other parts of Australia through internal migration.
Growth is not evenly spread, with Melbourne’s outer suburbs seeing the most dramatic increases. Areas like Rockbank and Mount Cottrell recorded the largest population jump in the country, adding around 4,600 residents in a single year. Nearby growth corridors including Fraser Rise to Plumpton and Mickleham to Yuroke also saw strong gains, each increasing by more than 4,000 people.
While the city’s edges continue to expand rapidly, inner Melbourne is becoming increasingly dense. The northern section of the CBD is now the most densely populated area in Australia, with around 43,300 people per square kilometre.
The figures highlight the dual pressures shaping Melbourne’s future, with booming outer suburbs accommodating new residents while the inner city intensifies. As infrastructure, housing and transport networks work to keep pace, the city’s rapid growth is reshaping both its skyline and its suburban fringe.
