Melbourne has taken out The Economist’s list of world’s most liveable cities for the sixth year running, while Sydney has been kicked out of its position in the top ten.
Melbourne Mayor Robert Doyle said retaining the title was a fantastic accolade.
"We do not take this title for granted and are constantly planning and implementing policies that will continue to improve our quality of life," he said.
Deputy Lord Mayor Susan Riley said Melbourne was a deserving winner.
"Sydney is a beautiful city, it has a beautiful bridge. But what it doesn't have is Melbourne. We have the culture," Ms Riley said.
He cited upcoming infrastructure projects including the Metro Tunnel and renewal of the Queen Victoria Market as aspects to watch out for.
As Melbourne revels in the honour, scoring 97.5 out of a possible 100 points, a perceived terrorism threat has kicked Sydney from the top 10 list.
"Although the top five cities remain unchanged, the past year has seen increasing instability across the world, causing volatility in the scores of many cities," the report said.
"This has been a year undoubtedly marked by terrorism."
Australian National University research fellow Clarke Jones questioned the threat, telling Fairfax Media it was an “unfair perception”.
“In terms of overall assessment of safe places to be, I think Sydney and other cities in Australia are just as safe,” Dr Jones said.
The harbour city now sits at 11th after falling four places.
Adelaide has retained its position in fifth, tied with the Canadian city of Calgary. Perth also makes the top 10, coming in at number seven.
The ranking compares 140 countries across five categories: stability, healthcare, culture and environment, education and infrastructure.
Vienna in Austria came in at number two, and Canada’s Vancouver and Toronto ranked third and fourth respectively.
The Syrian city of Damascus ranked last among the list.
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