Melbourne Best City in the World to Live In

Melbourne is now rated the best city in the world to live in, according to the latest Economist Intelligence Unit's Global Liveability Survey. Melbourne has edged ahead of the Canadian city, Vancouver, which has topped the ranking for almost a decade.

Melbourne came top in the bi-annual ranking of 140 cities globally, with a score of 97.5% - enhancing its bragging rights over Sydney, Economist Intelligence Unit survey editor Jon Copestake said from London. Sydney was ranked the sixth best city in the world, up from seventh place in the survey six months ago, while Perth and Adelaide remain unchanged at joint eighth place.

"Australia, with a low population density and relatively low crime rates, continues to supply some of the world's most liveable cities," Copestake said.

"Despite the rising cost of living driven by the strong Australian dollar, these cities offer a range of factors to make them highly attractive," he said.

Melbourne actually topped the ranking in this survey by virtue of a slight fall in Vancouver's infrastructure score, Copestake added.

In contrast to the strong performance of Australian cities, elsewhere in the world the impact of austerity and unrest has been a prominent factor. For instance the Greek capital Athens has dropped five places due to recent austerity measures and civil unrest, to 67th place. Expatriates working in Athens could now qualify for a hardship allowance, the survey found.

Athens is now the only city in Western Europe with a score of below 80 per cent, putting it below emerging economy cities such as Montevideo in Uruguay.

The Arab Spring uprisings have also prompted a fall in liveability for affected cities in the Middle East. This was most pronounced in Tripoli in Libya, where the descent into civil war saw the city plummet from 107th place to 135th.

The liveability report surveys 140 locations around the world to assess the best or the worst living conditions. It originated as a means of testing whether HR departments needed to assign a hardship allowance as part of expatriate relocation packages. It has since evolved as a broad benchmarking tool used by city councils, organisations or corporate entities looking to test locations against one another.

Cities are scored on political and social stability, crime rates and access to quality health care. It also measures the diversity and standard of cultural events and the natural environment; education (school and university); and the standard of infrastructure, including public transport.