Sydney is top for population density: ABS - The Australian

THE suburbs around Sydney's CBD contain more people per square kilometre than any other place in Australia, national statistics show.

Ultimo, Potts Point-Woolloomooloo, Darlinghurst and Surry Hills represent the nation's most densely populated areas, according to figures from the Australian Bureau of Statistics (ABS).

"Each of these areas has a population density of over 13,000 residents per square kilometre," Director of Demography, Bjorn Jarvis said in a statement.

Inner-city Melbourne has the next highest density, with 10,100 people per square kilometre.

However it had Australia's biggest increase in density in 2011-12, adding an extra 860 people per square kilometre over that period.