Cost of Living in Melbourne vs Sydney: A Complete Comparison

People move homes for many reasons. It might be for work, or they want to start anew somewhere else — with family or alone. Others just need a change of scenery — they’re taking advantage of our new freedom to work from home (or anywhere really).

If you’re planning to move, your first thought was probably, “How expensive is moving interstate?” But I can tell you that an even more important factor is the cost of living in your new city. You need to determine whether the move will allow you to maintain a good lifestyle and afford the essentials in your new location.

You probably have thought about moving from Melbourne to Canberra or Sydney to Canberra but at the end of the day the comparison is always between the two most important cities in Australia. Melbourne and Sydney.

This guide will help you with your research on Melbourne vs Sydney cost of living. Before finalising your relocation plans continue reading to find answers to questions such as: Do you think Melbourne is better than Sydney? Is Sydney more expensive than Melbourne?

Rent and Salary Comparison: Melbourne vs Sydney

Many people know (or guess, at least) that Sydney is usually more expensive than Melbourne, but the possibility of getting a better-paid job is higher. But… is it actually true?

Below is a sample comparison of how monthly rent and salaries stack up for several common professions in Melbourne versus Sydney. Discover the reality with real data:

Profession	Monthly Salary Melbourne	Monthly Rent Melbourne	% of Salary on Rent Melbourne	Monthly Salary Sydney	Monthly Rent Sydney	% of Salary on Rent Sydney

Waiter/Barista

$4,800

$2,600

~54%

$4,800

$3,350

~70%

Construction Worker

$5,600

$2,600

~46%

$5,600

$3,350

~60%

Traffic Controller

$5,200

$2,600

~50%

$5,200

$3,350

~64%

Registered Nurse

$6,400

$2,600

~41%

$6,400

$3,350

~52%

Engineering Manager

$12,000

$3,300

~28%

$12,500

$3,900

~31%

As I look at the numbers above, it’s clear that Sydney generally demands higher rents, which means the same salary covers less of my living expenses compared to Melbourne. For lower-paying jobs, like working as a waiter or barista, rent can exceed half of one’s monthly income in Sydney, whereas it’s closer to half in Melbourne.

For higher-earning roles—such as engineering or management—it’s easier to keep rent under a third of my income in both cities, although Sydney still pushes that ratio higher. Of course, location is key; moving farther from the CBD or sharing a place can help me significantly lower my rent-to-income percentage no matter which city I choose.

Housing Market Differences — Sydney vs Melbourne

Now before moving on to getting your change of address checklist and your moving checklist, you need to know that Melbourne and Sydney are two cities with two of the strongest property markets in Australia, fuelled by population growth and demand for continuous urban life.

Prices and availability differ greatly between the two cities and both have plenty of housing options.

Rent Comparisons

Sydney is usually more expensive to rent than in Melbourne. For example, an apartment of one bedroom in Sydney city centre goes for about AUD 3,200 a month, while one in Melbourne costs about AUD 2,200. Sydney suburban rents are also 15 to 30 per cent higher.

The same thing happens with the popular neighbourhoods of both cities. Sydney’s Bondi or Surry Hills rents are higher than Melbourne’s Fitzroy or St Kilda.

Unit Type	Sydney Rent Per Month (AUD)	Melbourne Rent Per Month (AUD)
Apartment (1 bedroom) in city centre	3,283.05	2,240.7
Apartment (1 bedroom) outside of centre	2,213.87	1,885.75
Apartment (3 bedrooms) in city centre	6,246.27	4,231.72
Apartment (3 bedrooms) outside of centre	3,874.36	2,702.37

Buying Property

Buying property in Sydney is also pricier. In Sydney, the median house price is AUD 1.4 million; in Melbourne, it’s closer to AUD 900,000. Both cities have cheaper apartments but Sydney still got higher prices.

Unit Type	Sydney Price Per SQM (AUD)	Melbourne Price Per SQM (AUD)
Apartment in city centre	23,601.04	10,867.83
Apartment outside of centre	14,046.0	8,402.62

Source: Domain & Realstate.com.au

The Sydney property market has traditionally been more expensive but Melbourne is experiencing growing demand and housing prices are going up. Sydney real estate is more volatile than the Melbourne market and experts see it as less volatile with growth potential.

If you are buying property then do not forget stamp duty which is more expensive in Sydney. Both cities homeowners will also need to budget for body corporate fees (if buying an apartment), council rates and insurance.

Once you have chosen the neighbourhood you will be moving in to, it’s time to calculate your moving volume and cost, feel free to use our easy calculator.

Transportation Costs

Trains, buses, ferries and light rail are some of the options you can choose in Sydney’s public transport system, with a weekly Opal cap of about AUD 60. In Melbourne, trains, trams and buses are on offer with a Myki card with a cap around AUD 50 per week – slightly more affordable than a car if you’re a regular commuter.

Both have a well developed network but Melbourne has trams which make it easier to get around the city centre. Because of its size, commutes are longer but more reliable for greater distances so Sydney depends on trains.

The table of information below can help you determine your long term transportation expenses in either city:

Item	Cost in Sydney (AUD)	Cost in Melbourne (AUD)
One-way ticket (local transport)	5.0	5.3
Monthly pass (regular price)	217.39	180.0
Taxi start (normal tariff)	7.0	5.5
Taxi 1km (normal tariff)	5.0	3.0
Taxi 1 hour waiting (normal tariff)	85.0	40.56
Gasoline (1 litre)	2.0	1.9

Source: Numbeo.com

Registering a vehicle in both cities is different by type but Sydney drivers also regularly pay more in tolls, especially if they work down the M5 or across the Harbour Bridge. Because Melbourne has less toll roads, driving around the city is a little bit cheaper.

Ride-Sharing and Other Alternatives

Both cities have Uber and DiDi and the prices of them depend on demand and distance. Sydney fares are a bit higher because of the longer distances between key areas and higher demand in peak times.

If you’re environmentally conscious, you can find more affordable options for renting bikes or using scooters in Melbourne, Sydney has more hilly streets so the bikes are less popular.

Groceries and Everyday Essentials

Anyone can tell you that grocery shopping is one of the most common expenses, which is why it’s good that both cities have the same major supermarket chains and produce. But you might notice small variances in the rates and choices in every city that can affect your weekly grocery bill.

We’ll go through the costs of common grocery items, shopping experiences, and dining out so that you know what to expect.

Overview of Grocery Shopping in Each City

Both Melbourne and Sydney have supermarkets well equipped with major supermarket chains in both cities including Coles, Woolworths and ALDI.

Specialty stores and local markets are common as well and they stock a host of organic produce and international ingredients as well as artisanal goods.

Local markets are another source of Melbourne’s buzz, including the Queen Victoria Market, where you’ll find fresh, affordable produce. Although Sydney markets also include the Sydney Fish Market, prices are consistently higher, considering that Sydney overall is simply naturally expensive to live in.

Price Comparisons for Common Groceries

The two cities can have grocery price fluctuations but Melbourne in general is slightly cheaper for staples.

For example a loaf of bread should cost about AUD 4.00 and a litre of milk approximately AUD 2.00 in both cities. A dozen eggs would set one back AUD 6.50 in Sydney and around AUD 6.00 in Melbourne. Fresh produce and meat can also have slightly different prices, with Melbourne local markets often beating the price of its fresh produce and meat, as seen in the following table.

Source: Coles & Woolworths

Melbourne also has a variety of farmers markets which are an additional opportunity for budget conscious shoppers to be able to buy fresh food directly from the producer. If you are thinking to move from Melbourne to Sydney you are lucky as the sunny city has more choice of specialty and international stores but they tend to be more expensive.

Dining Out and Restaurant Costs

Regarding restaurants, both cities have a lot of restaurants and the same kind of things cost about the same.

Item	Price in Sydney (AUD)	Price in Melbourne (AUD)
Meal, inexpensive restaurant	25	25
Meal for 2 people, mid-range restaurant, three-course	120	100
McDonalds meal (or equivalent combo meal)	15	15
Domestic beer (0.5-litre draught)	10.32	12
Imported beer (0.33-litre bottle)	12	11
Cappuccino (regular)	5.25	5.23
Coke/Pepsi (0.33-litre bottle)	3.81	4.04

In Sydney you pay more for good food, especially at the harbourfront. Both cities are multicultural with a lot of international cuisine. Sydney gets high marks for the abundance of internationally recognised high end restaurants and Melbourne is renowned for its street restaurants and cafe culture.

Utilities and Internet

Melbourne and Sydney have differences in the cost of bills because of climate, usage and service providers.

Below are average monthly utility costs while renting and owning, and cost of internet and mobile phone services in both cities in the table below.

Item	Price in Sydney (AUD)	Price in Melbourne (AUD)
Basic (electricity, heating, cooling, water, garbage) for an 85 sq.m. apartment	302.88	229.16
Mobile phone monthly plan with calls and 10GB+ data	40.84	39.5
Internet (60 Mbps or more, unlimited data, cable/ADSL)	79.06	78.78

Utilities in both cities come with expenses that vary with the season and your real energy use. During the colder months in Melbourne and the hotter months in Sydney utility costs can soar.

The more extreme weather variations of Melbourne tend to come with cold winters and therefore a greater need for heating. Sydney sweltering summers often require higher use of air conditioning leading to higher electricity bills during peak periods.

The mobile phone plans in Australia are similar to each other, whether it is being prepaid or postpaid and you can get it from Telstra, Optus, or Vodafone.

Healthcare and Medical Costs

Healthcare is an important element of life, it does not matter if you are entitled to public Medicare or prefer to use private health insurance, you need to know the cost of medical services in Melbourne and Sydney.

The Australian system of public healthcare, known as Medicare, is free or subsidised for residents to see doctors, specialists and public hospitals.

In either city, visiting a GP without Medicare coverage can cost up to AUD 80 per consultation. Medicare will generally pay for half of the cost.

Medicare doesn’t cover dental care and a routine check up (exam, scale and clean and fluoride treatment) and this can cost from AUD 160 to AUD 300 or more across Australia. Depending on the service, specialist appointments tend to be even higher, unless you have private health insurance.

In Sydney, the average cost of (basic) private health insurance is about AUD 84 per month and in Melbourne it’s about AUD 87 per month for singles. But it depends on your age, income, coverage level and the insurance company. In both cities, couples and families will pay more depending on the coverage.

Childcare and Early Education

Childcare and early education costs will also be on their minds for families mulling a move to Melbourne or Sydney. Working parents and those settling with young children need these services.

Childcare fees can be very different from place to place, type of care and government subsidies. Here we break down the expenses and the options available for both cities in order to help families make informed decisions.

Childcare Costs in Melbourne vs Sydney

Childcare services in Australia are expensive, with both cities offering a variety of options from daycare centres to after school care. Although government subsidies like the Child Care Subsidy (CCS) can help you take the cost from childcare down, the amount you get depends on how much you make and how many hours you work.

In Melbourne regional areas are generally more affordable for childcare than inner city areas. On the other hand, Sydney’s population is so dense and demand is so high in some suburbs, such as the Northern Beaches and Eastern Suburbs, that prices rise.

Each city has a combination of public, private and community run centers, which vary in price depending on location and type of service.

To see the cost of pre-school and primary education have a look the table below.

Item	Cost in Sydney (AUD)	Cost in Melbourne (AUD)
Preschool (or kindergarten), full day, private, monthly for 1 child	2,992.38	2,819.33
International primary school, yearly for 1 child	27,359.17	31,694.7

Source: Numbeo.com

State funded kindergartens are more widely available in Melbourne and they can be cheaper, Sydney’s preschool fees also tend to be higher because of greater demand and higher operating costs. Uniforms, excursions and supplies are other additional expenses that you should count.

You may have already more or less decided but if you need help with getting your things together and moving them, our packing and moving services will help you and you can put your focus on other important things.

Entertainment and Leisure Activities

Melbourne and Sydney have both a big variety of entertainment and leisure. All these qualities make either of the cities an ideal place for families, young professionals and retirees. But, the cost of living in these cities can range significantly from what you’re willing to pay for and how you live.

The Sydney Opera House is one of Sydney’s most iconic sites and tickets to attend performances can go for anything between AUD 50–300 depending on the event.

Melbourne is known as the cultural capital of Australia with certain galleries and museums such as the National Gallery of Victoria offering free entry on many shows. If you’re a fan of going to the theatre, museum or galleries then Melbourne’s arts scene can feel a little more accessible and diverse.

Both cities are packed with options for fitness enthusiasts but on slightly different budgets, and generally speaking Sydney tends to be more expensive.

Take a look at this table showing the average cost of a fitness club membership, a tennis court rental and cinema ticket in Sydney and Melbourne.

Item	Cost in Sydney (AUD)	Cost in Melbourne (AUD)
Fitness club, monthly fee for 1 adult	91.66	81.75
Tennis court rent (1 hour on weekend)	29.25	25.0
Cinema ticket, international release, 1 seat	24.0	22.0

Both cities are full of free outdoor activities like beach outings and hikes all year round. Melbourne has huge parks, like the Royal Botanic Gardens, and hiking trails, while Sydney has the famous Bondi Beach and its coastal walks (like the Bondi to Coogee Coastal Walk).

Work-Life Balance

Sydney has a good lifestyle but Melbourne is usually considered to have a better work life balance. If you already decided to move to Melbourne but don’t know where, check our guide of worst suburbs in Melbourne, we will help you to take a better decision!

Sydney’s commute times are usually longer (40 to 60 minutes in the busier areas) while Melbourne commute times are closer to 30 to 45 minutes.

Sydney and Melbourne both have job opportunities but Sydney is a financial hub so there will be more of these high stress but high paying roles. If you find a slower paced work environment more attractive, Melbourne is then your best option.

Moving Interstate from Sydney to Melbourne? North Removals Makes It Easy

Deciding between Melbourne and Sydney can feel daunting, especially with differences in housing, transport, and everyday costs. On the surface, Sydney demands a bigger budget with higher rents, while Melbourne typically offers slightly cheaper alternatives. Yet your personal needs—like commute times and job opportunities—can tip the scales either way. It’s essential to weigh up Melbourne vs. Sydney cost of living before you make the final call.

I remember once helping a family move from Sydney to Melbourne, eager to enjoy the lower housing costs and vibrant arts scene. They quickly realised, though, that Melbourne’s cold winter demanded higher heating bills, so it was a balancing act. Over the past two decades, I’ve seen countless moves succeed when families do their research. A well-informed plan helps you settle in faster and truly embrace your new environment.

So if you’ve decided where you’ll plant your feet next, let my dedicated team at North Removals make it seamless. We’re here to handle the heavy lifting, whether you’re swapping the skyline of Melbourne for the beaches of Sydney, or vice versa. I’d love to personally guide you through the process and ensure everything arrives safely. Contact us today to schedule your upcoming move — we are the best rated interstate removalist in Australia and we’ll turn it into a great experience.