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.

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

• 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!)

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!

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

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.

• 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

• 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