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Cost of Living: London vs. Melbourne

May 30, 2018 by alice 1 Comment

Before moving to Melbourne, I lived in London for 7 years. Both Melbourne and London are considered to be expensive cities and having lived in both I’ve been able to get a really good gauge as to the cost of living comparison – something I was really interested to know before I moved here. Salaries are greater in Australia, and cost of living is generally lower, meaning the quality of life in Melbourne far surpasses that of London. However, there are some areas where Melbourne is more expensive, so I thought I’d outline a general comparison below. Bear in mind this is just an average – you may pay more, you pay less – but it can serve as a rough guide.

Rent

Comparison: 1 bedroom apartment

City Centre

  • London: £1,653.76 ($2,796.57 AUD)
  • Melbourne: £1,109.65 ($1,724.27 AUD)

Outside City Centre

  • London: £1,178.20 ($1,992.38)
  • Melbourne: £755.56 ($1,277.68)

Verdict: Rent prices are in London are 67% higher than in Melbourne

Utilities

Comparison: Electricity, Heating, Water etc
  • London: £137.96 per month ($233.30 AUD)
  • Melbourne: £122.21 per month ($206.66 AUD)

Comparison: Internet

  • London: £25.59 per month ($43.27 AUD)
  • Melbourne: £42.55 per month ($71.96 AUD)

Verdict: Overall utilities are cheaper in Melbourne, with the exception of internet which is greater (and generally slower too!)

Transport

Comparison: One Way Ticket

  • London: £2.50 ($4.23 AUD)
  • Melbourne: £2.42 ($4.10 AUD)

Comparison: Monthly Pass

  • London: £132 ($223.23 AUD)
  • Melbourne: £85.77 ($145.04 AUD)

Verdict: Transport in Melbourne is cheaper!

Groceries

Milk

  • London: £0.93 ($1.57 AUD)
  • Melbourne: £0.76 ($1.29 AUD)

White Bread

  • London £1.03 ($1.75 AUD)
  • Melbourne £1.45 ($2.45 AUD)

Eggs

  • London: £2.11 ($3.57 AUD)
  • Melbourne: £2.65 $4.48 AUD)
Chicken Breasts

  • London: £6.51 (11.01 AUD)
  • Melbourne: £5.96 ($10.08)

Beef Round:

  • London: £8.35 ($14.12 AUD)
  • Melbourne: £9.58 ($16.20 AUD)

Cheese:

  • London: £5.77 ($9.76 AUD)
  • Melbourne: £6.54 ($11.07 AUD)

Verdict: Groceries in London are 26.5% lower than in Melbourne

Eating Out

Comparison: Meal for two

Inexpensive Restaurant (2 meals)

  • London: £30.00 ($50.73 AUD)
  • Melbourne £ 17.74 ($30.00 AUD)

Mid-range Restaurant (3 Course meal for 2)

  • London: £55.00 ($93.01 AUD)
  • Melbourne: £47.31 ($80.00 AUD)

Comparison: Wine

  • London: £8.00 ($13.52 AUD)
  • Melbourne: £8.87 ($15.00 AUD)

Verdict: Restaurant prices in London as 27% higher than in Melbourne, however alcohol is more expensive in Melbourne.

Leisure

Cinema:
  • London: £12.00 ($20.29 AUD)
  • Melbourne: £11.83 ($20.00 AUD)

Gym:

  • London: £45.99 per month ($77.78 AUD)
  • Melbourne: £40.99 per month ($69.32 AUD)

Verdict: Leisure prices in London are higher than in Melbourne

Salary

Comparison: Average Net Salary (after tax):

  • London £2224.58 per month ($3,761.85 AUD)
  • Melbourne £2541.32 per month ($4297.47 AUD)

As you can see, overall, the cost of living in Melbourne is cheaper than London (with greater earning potential). That said, things like groceries, clothes and alcohol are more expensive. I’ve provided a brief summary above, but if there is anything missing from the list – feel free to reach out and I’ll happily let you know based on my own experience!

*Source: Budget Direct

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Comments

  1. Nicola says

    May 30, 2018 at 11:31 pm

    Great comparison. More reason to live in Melbourne forever perhaps…

    Reply

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