Three Reasons This Aussie City Was Ranked ‘World’s Best’ – And How It Gets Great

An Aussie city recently topped a list of the world’s best cities, and the reasons go beyond food and culture – from where people live to how the city continues to grow.

Melbourne has been named the world’s best city for 2026 by Time Out, a global guide that highlights the culture of the city’s neighbourhoods, accessible transport and everyday life.

While the ranking highlights food, culture and major events, it also shows how Melbourne is developing as a place to live.

As the city attracts new residents from central and overseas, new homes are being delivered in areas that support the lifestyle it is known for.

Here are three reasons why Melbourne deserves its place at the top of the list – and how new housing is helping the city continue to thrive.

1. The ‘good’ factor

Melbourne’s appeal has long been driven by neighborhoods with a strong identity, and Fitzroy is one clear example – known for its live music venues, independent retailers, cafes and proximity to the CBD.

The Regent at Fitzroy offers a 315sqm rooftop terrace with barbeque facilities and panoramic views. Photo: realestate.com.au

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New apartment developments in the suburbs are adding homes within this established urban setting, giving more people the opportunity to live close to the culture that defines Melbourne life.

Fabbrica by Pace Development Group delivers a mix of apartments and townhouses informed by Fitzroy’s manufacturing and industrial heritage.

The development includes shared rooftop spaces designed for work, dining and entertainment, with interiors by Melbourne studio Winwood McKenzie and SJB properties.

Nearby, The Regent by SMA Projects rises on the former site of the historic Regent Theatre, drawing on the area’s cultural history through its architectural and interior design.

Designed by Hayball with interiors by Studio Tate, the development includes shared rooftop apartments, concierge and residential services.

2. Better transportation, better connected homes

Melbourne’s growing transport network is developing where people can live comfortably, supported by draft maps that identify rail and tram hubs as key areas for more housing and services.

Eighth in South Melbourne is within walking distance of the new Anzac Metro station. Photo: realestate.com.au

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The Metro Tunnel, which opened in November 2025, has improved the connection between inner city areas and major employment areas. Its new Anzac station opens up parts of South Melbourne, St Kilda Road and the Arts Precinct for apartment development close to public transport and jobs.

The Eighth, located near the Royal Botanic Gardens, is a boutique development designed with a limited number of living spaces per floor and a strong emphasis on living space.

The building combines shared living and rooftop spaces and sits within walking distance of a park, cultural venues and public transport links that connect directly to the CBD.

Also nearby, First Light by DCF Property on Albert Road is a small collection of apartments designed by Yoo Studio, with interiors by Léo Terrando.

The development includes high quality materials, smart building technology and shared facilities, as well as benefits from close access to the new Anzac Station.

3. Homes are designed for lifestyle, not just space

As Melbourne grows, the focus is not just on adding homes – it’s also on how those homes are designed and how they support everyday life in the long term.

A rendering of what the new Fitzroy Gasworks site might look like. Photo: Victoria Development

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A growing share of Melbourne’s newest housing is being delivered through build-to-rent (BTR) developments, where long-term tenancies, shared services and flexibility are at the heart of the model.

Location is a single provider with projects across Melbourne, including Southbank, Docklands, South Melbourne, Box Hill and Kensington.

Its development in Kensington is supported by shared facilities such as work spaces, living rooms, gyms and outdoor areas, while also benefiting from strong access to public transport close to parks, cafes and daily services.

Further north, operator BTR has been appointed to deliver the third and final parcel to Fitzroy Gasworks, a new facility which will rise on a former gas incineration site.

Local is slated to deliver around 360 BTR apartments, including over 100 affordable housing units, along with existing community infrastructure such as Wurun Senior Campus and Bundha Sports Centre.

Are you interested in learning more about buying and building new? Check out our New Homes section.