When you think of the world’s most liveable cities, you might picture the cobbled streets of Paris, the bustling markets of Tokyo, or the leafy boulevards of Vancouver.
But in a recent global ranking, it’s our very own Brisbane that’s turned heads—earning the title of the world’s second-best city for cost of living, just behind Seoul.
According to Compare the Market’s latest Cost of Living Index, Brisbane’s affordability is no fluke. The city clinched the number two spot for the second year running, thanks in large part to its ‘ultra-cheap’ public transport fares—just 50 cents a trip.
For retirees, families, and anyone watching their wallet, that’s a game-changer. With the cost of petrol averaging $1.64 per litre (a relative bargain in today’s world), and an average annual wage of $105,810, Brisbane is proving you don’t have to sacrifice lifestyle for affordability.
But it’s not just about cheap bus rides. The index also considered factors like rent (which has risen 19% since 2015 but remains competitive compared to other capitals), home price increases, and the overall cost of everyday essentials like milk, bread, and electricity.
The Cost of Living Index compares 42 capital cities across 11 different factors to determine affordability.
These factors included cash rates, average annual wages, and unemployment rates, as well as fuel and electricity prices.
It also considered public transport costs, prices for everyday staples such as milk, bread, and coffee, and the rate of increase in both rent and house prices.
While Seoul took out the top spot, Brisbane’s combination of affordable transport, reasonable fuel prices, and solid wages put it ahead of other heavyweights.
Melbourne also made a strong showing, coming in fifth, while Sydney surprised many by jumping to ninth place—both cities improving their rankings from last year.
Stephen Zeller, Compare the Market’s general manager of money, was quick to point out that no city scored higher than seven out of 10. ‘No place is entirely perfect for those seeking cost-of-living relief,’ he said.
Even in Brisbane, the Reserve Bank’s cash rate (currently at 4.1%) and the rising cost of some groceries and utilities mean there’s still room for improvement.
But there’s good news on the horizon. If the Reserve Bank follows through with expected interest rate cuts before August, Brisbane could be poised to overtake Seoul and claim the top spot next year.
Several factors are helping Australian cities climb the rankings in the Cost of Living Index. Lower cash rates are making mortgages and loans more affordable, while higher average wages are giving residents greater spending power.
Additionally, falling fuel and electricity prices are easing pressure on household budgets, contributing to an overall improvement in cost-of-living conditions.
All Australian cities in the index used the same national figures for fuel, rent, and home price rises, ensuring a level playing field.
While Brisbane’s affordability is worth celebrating, the experts agree: there’s always more you can do to keep your costs down. Zeller recommends shopping around for better deals on your home loan, energy plan, and insurance. ‘Don’t pay a cent more than you need to on everyday bills,’ he advises.
As Brisbane gains international recognition for its affordability, it’s clear that cost-of-living factors continue to shape how cities are experienced and ranked around the world.
What do you think about Brisbane’s placement on the global list? Have you noticed changes in the cost of living where you live? How do you think these rankings reflect everyday realities?
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