How Much Does It Cost to Live Comfortably in Melbourne, Australia?

Known for its vibrant arts scene, diverse culinary offerings, and dynamic lifestyle, Melbourne attracts people from all walks of life.

But what does it cost to live comfortably in this bustling metropolis?

This comprehensive guide by the best Melbourne Movers breaks down the essential expenses you’ll encounter when living in Melbourne.

1. Housing and Accommodation

Housing is often the largest expense for anyone living in Melbourne. The price of housing in Melbourne can significantly differ based on your chosen lifestyle and the area you decide to live in.

Renting in Melbourne

Melbourne offers a range of rental options from modern high-rise apartments in the city center to cozy houses in the suburbs. For those looking to live close to the action, the Central Business District (CBD) and inner-city suburbs like Southbank and Fitzroy are popular choices. Rent in these areas can be steep, with one-bedroom apartments ranging from AUD 350 to 600 per week. Moving further out to suburban areas like Brunswick or Footscray, the rent for a similar apartment drops to around AUD 300 to 450 per week.

For families or those needing more space, suburban houses provide better value. A three-bedroom house in the suburbs typically costs between AUD 550 and 900 per week, while similar properties in inner-city areas can fetch up to AUD 1,200 per week.

Buying Property

If you’re planning to settle in Melbourne long-term, buying property might be a viable option. The median price for an apartment in the inner city is between AUD 600,000 and 900,000, while suburban houses range from AUD 900,000 to 1.5 million. Melbourne’s property market is competitive, so it’s essential to research thoroughly and consider potential future growth in various suburbs.

2. Utilities and Internet

Utilities are another significant part of the living cost in Melbourne. For a typical two-bedroom apartment, expect to pay monthly utilities (electricity, gas, water) ranging from AUD 170 to 300. Internet services are also essential, with unlimited broadband plans costing between AUD 60 and 90 per month.

3. Transportation

Melbourne boasts an extensive public transportation network, including trains, trams, and buses, making it easy to get around without a car.

Public Transport

Melbourne’s public transportation system is both user-friendly and cost-effective, especially with a Myki card—a reloadable smart card that simplifies travel across the city’s extensive network of trains, trams, and buses.. A monthly pass for zones 1 and 2 costs between AUD 160 and 200, allowing unlimited travel across most of the metropolitan area. Single trips within the city center are capped at AUD 4.60, making it an economical choice for daily commutes and weekend outings.

Owning a Car

While public transport covers most areas, owning a car provides flexibility, especially if you live in outer suburbs or frequently travel outside Melbourne. However, car ownership includes additional costs such as registration, insurance, fuel, and maintenance. Annually, these costs can total between AUD 2,800 and 4,200, depending on the type and usage of the vehicle.

4. Groceries and Dining

Food expenses in Melbourne can vary significantly based on your eating habits. Cooking at home is generally more economical, with weekly grocery bills for a single person averaging around AUD 100 to 150. Staples like milk, bread, and eggs are reasonably priced, while fresh produce and meats can be a bit more expensive.

Dining Out

Melbourne’s food scene is legendary, offering everything from budget-friendly eateries to high-end dining experiences. An inexpensive meal at a local restaurant costs between AUD 15 and 25, while a three-course dinner for two at a mid-range restaurant can range from AUD 70 to 120. Melbourne's café culture is also thriving, with a cup of coffee typically costing around AUD 4.00 to 5.50.

5. Healthcare

Australia’s healthcare system provides high-quality services through public (Medicare) and private options.

Medicare

If you’re eligible for Medicare, you’ll have access to many free or subsidized services, including visits to general practitioners (GPs). While GP visits are often bulk-billed (free), some practices charge a fee, typically ranging from AUD 40 to 80 per visit. Specialist consultations can cost between AUD 100 and 250, depending on the provider.

Private Health Insurance

Private health insurance is an additional cost but can be valuable for covering extra services and reducing wait times for elective procedures. Basic health insurance plans start at about AUD 70 per month, with comprehensive plans costing up to AUD 400 per month, depending on the coverage.

6. Education

Melbourne offers a wide range of educational opportunities, from public and private schools to world-renowned universities.

Schooling

Public schools in Melbourne are generally well-regarded and offer free education, although there may be voluntary contributions and fees ranging from AUD 200 to 600 annually. Private schools, however, come with substantial fees, typically ranging from AUD 10,000 to 30,000 per year.

Higher Education

For higher education, Melbourne is home to several prestigious universities, including the University of Melbourne and Monash University. Domestic students pay annual tuition fees ranging from AUD 10,000 to 30,000, depending on the course. International students face higher fees, often between AUD 20,000 and 45,000 per year.

7. Entertainment and Leisure

Living in Melbourne isn’t just about covering the basics; it’s about enjoying the city’s vibrant culture and lifestyle.

Cultural Activities

Melbourne is a hub for arts and entertainment. A night at the movies costs around AUD 15 to 25, while tickets to live performances or concerts can range from AUD 50 to 150. The city also hosts numerous annual festivals, such as the Melbourne International Comedy Festival and the Melbourne Cup, with ticket prices varying based on the event.

Sports and Fitness

For sports enthusiasts, Melbourne offers plenty of options. Joining a local gym in Melbourne typically costs between AUD 50 and 100 per month, depending on the facilities and membership level you choose. Attending an AFL game, a popular activity among locals, costs around AUD 30 to 100 per ticket, depending on the seating and the match.

8. Miscellaneous Expenses

Additional expenses in Melbourne include clothing, personal care, and mobile phone services. Monthly mobile phone plans typically cost between AUD 30 and 60. Personal care, such as haircuts, can range from AUD 30 to 80 depending on the salon and services.

9. Budgeting for a Comfortable Life

To summarize, the cost of living comfortably in Melbourne for a single person ranges from AUD 3,500 to 4,500 per month. This includes rent, utilities, transportation, groceries, and leisure activities. For a family of four, these costs can increase to between AUD 6,000 and 8,000 per month.

Example Monthly Budget for a Single Person:

• Rent (1-bedroom apartment in the city): AUD 2,200
• Utilities (electricity, gas, water): AUD 200
• Internet: AUD 75
• Public Transport: AUD 180
• Groceries: AUD 600
• Dining Out and Entertainment: AUD 500
• Healthcare (private insurance): AUD 150
• Miscellaneous: AUD 300

Total: AUD 4,205

Example Monthly Budget for a Family of Four:

• Rent (3-bedroom house in the suburbs): AUD 3,600
• Utilities (electricity, gas, water): AUD 300
• Internet: AUD 90
• Public Transport: AUD 600
• Groceries: AUD 1,200
• Dining Out and Entertainment: AUD 800
• Healthcare (private insurance): AUD 300
• Education (public school): AUD 50
• Miscellaneous: AUD 600

Total: AUD 7,540

Conclusion

Melbourne’s diverse culture, excellent amenities, and high quality of life come at a cost, but the rewards are plentiful. Whether you're planning to move here or just curious about what it takes to live comfortably, understanding these expenses will help you budget effectively and enjoy all that this wonderful city has to offer.

Additional Tips:

• Explore Different Suburbs: Each suburb in Melbourne offers a unique lifestyle and cost of living. Research and visit multiple areas to find the best fit for your budget and preferences.
• Utilize Public Transport: With an extensive network, Melbourne’s public transport can save you significant money compared to owning a car.
• Take Advantage of Free Activities: Melbourne offers many free or low-cost events, festivals, and cultural activities.

Melbourne is a city that offers endless opportunities and a high quality of life. With the right planning and budgeting, you can enjoy everything this dynamic metropolis has to offer while living comfortably.