vienna

Are the World's most liveable cities, affordable?

Market Insights
7 years ago
3 minutes

Yes, cities are voted the most liveable, but are they realistic?

Melbourne was again voted the most liveable city in 2015, and many are proud of that title - yet is it fair?

For years, and for almost a decade, Melbourne, Australia and Vienna, Austria, have dominated the title of EIU's ‘World’s Most Liveable City’; receiving votes for stability, health care, culture & environment, education and infrastructure. 

But where does affordability fit in, and shouldn’t it be considered when measuring liveability?

 

  1. Melbourne, Australia

Australia, unlike many other parts of the world is a buying culture, rather than renting. The old adage, ‘why pay for someone else’s mortgage, when you can be paying off your own’ is often preached by parents to their children at the dinner table. 

If you want to live in Melbourne’s inner city, an apartment will cost you around $7,559AUD per square metre.

Apartment in the inner city: $7,559aud per square meter

Apartment in the outer city: $5,760aud per square meter
 

Rental prices are also relevant, particularly for those who cannot (yet) afford a home.

1 bedroom/3 bedroom rent in inner city: $1,627/$3,319

1 bedroom/3 bedroom rent in outer city: $1,264/$1,997
 

Within Melbourne, the mortgage-to-income ratio is sitting just over 59.08%, meaning those living in Melbourne are allocating 40% of their income to expenses other than their mortgage.

It’s not so affordable, is it?
 

2) Vienna, Austria

Austria is a nation riddled with history, culture and difference; whilst Vienna operates as a classical European capital, areas such as the mountainous Salzburg represents a new form of European living, often forgotten due to the overwhelming presence of capital cities.

Vienna, in particular, is renowned for its Wien schnitzel, its opera, its coffee and of course, its cake. 

Apartment in the inner city: € 7,740 per square meter

Apartment in the outer city: € 3,793 per square meter
 

The rental culture in Europe has given Vienna a far cheaper rental prospect:

1 bedroom/3 bedroom rent in inner city: 1,102aud/$2,352aud

1 bedroom/3 bedroom rent in outer city: $779/$1,767

 

3. Vancouver, Canada

Canada, is a frequent relocation destination for Australian ex-pats, offering a safe city with the convenience of cross-Commonwealth visas, world renowned ski slopes, access to North America, and of course a much shorter flight to Europe.

Canadians always rave on about how great their country is, as replicated by its consistent presence in the top 5, but is it affordable?

Apartment in the inner city: $8,148aud per square meter

Apartment in the outer city: $5,596aud per square meter
 

Renting in Vancouver is marginally cheaper in the city centres, yet is more expensive to rent in general.

1 bedroom/3 bedroom rent in inner city: $1,565/$3,149

1 bedroom/3 bedroom rent in outer city: $1,141/$2,188

 

So it seems that affordabilty isn't as strong a factor as it could be when marginalising cities to categories.

Despite that, it seems that there is almost no doubt that these cities are the safest, the most accessible, and the most well-run.