Brisbane continues to be the second-most cost-effective city to live in globally, according to a new index by Compare the Market.
The ‘River City’ claimed the spot for the second year in a row thanks to ultra-cheap 50-cent public transport fares, alongside Australia’s relatively cheaper cost for petrol at $1.64 per litre on average, 19.00% rent price increase since 2015, and $105,810 average annual wage.
However, despite the Reserve Bank starting to cut the cash rate to 4.1% in February – the first time it has been cut for more than four years – the rate is still sub-par compared to other countries with a higher reported cost of milk, bread, and electricity prices on average.
Melbourne was named the fifth best cost-of-living friendly city, whereas Sydney was ninth – an improvement from seventh and 13th place respectively compared to the previous 2024 index. This improvement was thanks to the lower cash rate, higher average annual wage, and lowering average fuel and electricity prices.
The second iteration of the cost-of-living cities 2025 index covered 42 different capital cities across 37 economically developed countries globally and 11 cost-of-living factors. The full results and methodology can be found here.
Meanwhile, Seoul, South Korea ousted Brisbane as the top cost-of-living friendly city with a low 2.70% unemployment rate, 2.75% cash rate, and $0.20 per kWh average electricity rates.
However, Copenhagen, Reykjavík and Dublin were named the least cost-of-living friendly cities globally.
Compare the Market’s General Manager of Money, Stephen Zeller, said there was no ‘perfect’ city when it comes to cost-of-living.
“While Seoul, Brisbane and Madrid ranked at the top of our updated index, no city received a score higher than seven out of 10 – demonstrating that no place is entirely perfect for those seeking cost-of-living relief,” Mr Zeller said.
“However, there are ways to reduce cost-of-living pressures to ensure you’re not paying a cent more than you need to on everyday bills.
“Whether it’s your home loan, energy plan or insurances, shop around and compare what’s on offer.
“If your home loan is taking a larger-than-ideal portion off your payslip, it’s worth comparing what’s on offer from lenders, look for a better deal, and switch to help ease one major cost-of-living pressure.”
For the full results, please attribute: https://www.comparethemarket.com.au/home-loans/features/cost-of-living-cities-index/
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