Melbourne has risen to become the sixth-best city in the world according to the newly released 2025 Global Cities Index, marking a significant jump from its ninth-place ranking last year.
The prestigious study by Oxford Economics evaluated 1,000 major cities across 27 indicators spanning five key categories: economics, human capital, quality of life, environment and governance.
The Victorian capital now stands ahead of global icons like San Francisco, Los Angeles and Tokyo, cementing its position as Australia’s highest-ranked city.
Melbourne performed exceptionally well in human capital (12th globally), buoyed by its renowned universities and strong economy that continues to attract skilled workers worldwide. The city also ranked in the top 20 for economics and placed in the top ten percent for environmental performance.
New York claimed the top spot overall, followed by London and Paris in what has become a familiar top three. San Jose and Seattle rounded out the top five, with Melbourne’s rise pushing these established global cities down the rankings.
The report highlighted Melbourne’s world-class healthcare system, relatively low crime rates, environmental sustainability and cultural diversity as key strengths driving its high placement. However, it also noted the city’s growing housing affordability crisis as a significant challenge, mirroring trends seen in other major Australian cities.
Sydney made an impressive leap to seventh place (up from 16th last year), while Brisbane ranked 23rd. Perth and Canberra saw slight declines, coming in at 31st and 52nd respectively.
The full list of cities and their rankings is available here.
