Melbourne crowned the world’s best city for 2026

One of Australia’s fiercest rivalries has entered a new chapter, with Melbourne officially edging out Sydney to be crowned the world’s best city for 2026.

The Victorian capital claimed the top spot in Time Out’s annual list of the 50 best cities in the world, which surveyed 24,000 city dwellers globally across 44 different criteria to identify the best places to live.

Afloat bar and cantina on the Yarra River, Melbourne.

Melbourne climbed three places after finishing fourth in 2025, edging out Shanghai and Edinburgh to claim the top step of the podium. London and New York rounded out the top five cities.

Sydney finished 21st – six places lower than last year – while Adelaide also made the list at number 29 thanks to its vibrant arts scene, highly rated food and drink culture, and strong calendar of cultural and sporting events.

Sydney Harbour and CBD skyline at dusk.

To compile the rankings, Time Out surveyed city residents on criteria ranging from affordability and culture to the food scene, nightlife, shops, parks and museums. This year’s survey also included questions about residents’ lives, including love, romance, and community connection.

The results were then combined with votes from more than 100 Time Out city experts and a network of local writers to determine the final rankings.

Adelaide Convention Centre on the shores of the River Torrens.

According to Time Out, “Melbourne locals gave their hometown high marks across the board.”

Strong scores for happiness helped Melbourne secure the top ranking, with 94 per cent of respondents praising its food scene and 92 per cent rating its arts and culture highly.

Interestingly, Melbourne was also ranked as the world’s third-best city for Gen Z (those born between 1997 and 2012).

The Victorian city’s packed sporting calendar, including the Australian Open, Formula 1 Australian Grand Prix and a steady stream of AFL and international cricket, also helped cement its reputation as one of the world’s most liveable places.

Sydney’s natural beauty was highlighted as a major strength, as was its multiculturalism, rich cultural diversity, and thriving arts and live music scenes.

How do you feel about the rankings? Should Sydney rank higher than Melbourne? And are there any other Aussie cities you think deserve a place on the list? Let us know on social media.