Brisbane has been named the second most cost-effective city globally for cost of living, with the Queensland capital outperforming dozens of major cities in a new international index.
According to the Compare the Market’s Cost-of-Living Cities Index, Brisbane ranked just behind Seoul, South Korea, after researchers compared 42 major cities across 11 everyday cost factors.
The report considered the price of rent, electricity, public transport, petrol, staple groceries, average wages, unemployment rates and interest rates.
How Brisbane Stood Out
The Index showed that Brisbane residents are enjoying relatively affordable public transport options, boosted by Queensland’s trial of 50-cent public transport fares that began in August 2024. The city’s average petrol price of $1.68 per litre is also cheaper than many other capital cities, helping to ease the cost of living pressures for local families and commuters.
While rent prices in Brisbane have risen steadily, they have not soared as sharply as in cities like Sydney and Melbourne. Since 2015, rental costs in Brisbane have increased by about 17.7 per cent, a comparatively moderate figure given the rapid housing market shifts in other parts of Australia.
Challenges Remain for Households
Despite its strong affordability ranking, the Index showed that Brisbane is not without challenges. Electricity prices remain a concern for many households, with Brisbane’s average sitting at around 40 cents per kilowatt-hour, which is much higher than Seoul’s average electricity costs. Additionally, Australia’s higher cash rate of 4.35 per cent compared to South Korea’s 3.5 per cent means mortgage repayments and borrowing costs continue to stretch household budgets.
Still, Brisbane’s relatively low unemployment rate of 4.2 per cent and healthy average income levels have contributed to its strong performance in the global rankings.
Global Context and Community Relevance
Brisbane’s high ranking placed it above cities like Madrid, Luxembourg City, and Melbourne. On the opposite end of the scale, Copenhagen was ranked the least cost-effective, highlighting the contrast between cities where everyday essentials come with a much higher price tag.
Community leaders in Brisbane say the ranking is a reflection of the city’s efforts to manage living costs while still supporting economic growth. Residents are encouraged to take advantage of initiatives like the discounted public transport fares and to shop locally where possible to help manage household expenses.
While no city scored higher than 7 out of 10 in the Cost-of-Living Cities Index — meaning cost pressures are still felt globally — Brisbane’s result is a welcome recognition of its livability amid ongoing global economic challenges.
Top 20 Most Cost-of-Living Friendly Cities
| Rank | City, Country | Overall Score (/10) |
| 1 | Seoul, South Korea | 6.69 |
| 2 | Brisbane, Australia | 6.31 |
| 3 | Luxembourg City, Luxembourg | 6.26 |
| 4 | Madrid, Spain | 6.22 |
| 5 | Ljubljana, Slovenia | 5.93 |
| 6 | Bratislava, Slovakia | 5.92 |
| 7 | Melbourne, Australia | 5.91 |
| 8 | Rome, Italy | 5.89 |
| 9 | Mexico City, Mexico | 5.88 |
| 10 | Prague, Czech Republic | 5.84 |
| 11 | Ankara, Türkiye | 5.83 |
| 12 | Lisbon, Portugal | 5.82 |
| 13 | Sydney, Australia | 5.82 |
| 14 | Warsaw, Poland | 5.80 |
| 15 | Budapest, Hungary | 5.76 |
| 16 | Athens, Greece | 5.75 |
| 17 | Zagreb, Croatia | 5.74 |
| 18 | Tallinn, Estonia | 5.73 |
| 19 | Vilnius, Lithuania | 5.71 |
| 20 | Riga, Latvia | 5.70 |
Published 28-April-2025
