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How much does it cost to live in Melbourne? 2023 update.

Updated: Sep 27, 2023

The cost of living in Melbourne is relatively high and climbing; however, it is still lower than in some other major cities worldwide. According to, London is 31% more than Melbourne, with Singapore being 40%, and Sydney, its neighbour and rival city, only 6% higher. However, a fascinating fact is that it's more expensive to buy clothes, use personal care services and take advantage of Melbourne nightlife than in Sydney.

If you plan to move to Melbourne, it is essential to factor in the cost of living when budgeting for your move. You can use online tools like Numbeo and Expatistan to estimate the cost of living in Melbourne.

Here is a breakdown of the average cost of living in Melbourne:

  • Rent: A one-bedroom apartment in the 5 klm inner circle costs around AU$2,500 per month. A two-bedroom apartment costs around AU$ 3,500 per month. The main factors that affect the price are proximity to the CBD, transport and property quality.

  • Utilities: Electricity, gas and internet are essential services you must budget for. On average, expect to pay around $200 per month for utilities in a one-bedroom apartment and up to $350 for a 3-bedroom family home, depending on usage. Water differs from other utilities as it stays connected and remains in the landlord's name. Most landlords pass on their water costs to the tenant (expect to pay approximately $150 per quarter) but can only do so if water efficiencies are in place. Mobile phone costs vary from $40 - $100 depending on the type of contract.

  • Food: Groceries for a single person cost around AU$400 per and $1000 + monthly for a family. Also, this depends on where you shop and the types of food.

  • Transportation: A monthly pass for public transportation costs around AU$100.

  • Entertainment: Going out for dinner costs around AU$50 per person (without alcohol). A movie ticket costs around AU$20.

Understanding the costs of living in Melbourne can significantly affect how you prepare for and adjust to your relocation. Knowing what to expect can help you negotiate salaries and benefits with employers.

EWR relocation consultants have experience working with a range of clients, from graduates to CEOs (and everyone in between). As a result, they can tailor their services according to the location, type of housing or school requirements that most closely match their relocatee's budget. Want to find out more? Get in touch with one of our friendly team today


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