The latest population data revealed about 20,329 people lived in the area in 2018 compared to 17,378 in 2006.

The two suburbs were also the most highly populated part of the region in 2018, followed by Bendigo with 14,735 people and East Bendigo/Kennington with a population of 13,784.

Lansell Homes general manager Jeff Smith said the data was unsurprising considering the popularity of the pocket's housing market.

Read more: Central Victoria likely to see population growth into the future

"We've seen a great rise in interest," Mr Smith said. "We're finding that people are interested in its convenience being in the south of Bendigo.

"We have people coming out of Melbourne to live here because economically it's great.

"People choose Kangaroo Flat because you get all of the facilities of the city in Bendigo, and being closer to drive to Melbourne, but with the lifestyle of the country."

Bendigo Property Plus sales consultant Greg Fathers said the accessibility to public transport and the growing shopping precinct were positives for many people moving into Kangaroo Flat and Golden Square.

"It's an expanding retail centre with proximity to rail," Mr Fathers said. "The range of specialist shops as well as national brands are bringing people in to Kangaroo Flat for shopping and lifestyle.

"Also, the Gurri Wanyarra Wellbeing Centre is extremely popular, with hundreds of cars out there some weeks. It's well patronised and it's becoming almost like a shopping centre destination.

"Another small factor is the sense of community that is growing in Kangaroo Flat. Eaglehawk has always had that strong community feel and Kangaroo Flat is starting to get that as well.

"It's not a prime reason, but people do feel more secure because there is a sense of identity there."

Read more: Population growth in Bendigo steady but lack of affordable inner city accommodation evident

Mr Smith said while there was a population boom across most of the region, the Kangaroo Flat and Golden Square pocket was particularly appealing for buyers.

"The Melbourne market is too expensive for many people," Mr Smith said. "But even with the spread coming from Melbourne, a lot of the outer towns are also becoming more expensive.

"So Bendigo is really cost effective but in somewhere like Kangaroo Flat, you can get a house and land package for $350,000. You can't buy blocks of land for that sort of money in Melbourne."

Mr Smith said he expected the popularity of the region to continue in the future.

"We can't see it changing any time soon," he said.

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