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Housing market and general cozzie livs crisis aside, we reckon Sydney is a pretty good city to call home. And this month, we’ve got another certification to back up our claim – with the Harbour City just ranking as the top Australian city on the 2026 Oxford Economics Global Cities Index. Sydney’s 13th-place ranking puts it in the top five per cent of cities worldwide, offering some pretty solid proof (alongside the recent run of perfect sunsets) that we really do live in one of the world’s best cities.
RELATED READ: Sydney has been voted in the top 5 cities in the world by Condé Nast Traveler readers
For context, the annual index assesses 1,000 of the world’s largest cities across five categories: economics, human capital, quality of life, environment and governance. Rather than measuring liveability alone, it considers a city’s broader economic performance, workforce, environmental conditions and institutions.
Sydney scored 88.3 overall, with its strongest results in governance, where it ranked 13th globally, and quality of life, where it placed 17th. Its economics score ranked 26th, while human capital came in at 63rd and environment at 68th. According to Oxford Economics, Sydney’s large economy and concentration of corporate headquarters help drive its strong performance. The city is Australia’s largest by GDP and attracts international businesses, students and skilled workers.
Its quality-of-life result is supported by factors including relatively low crime, long life expectancy, high household incomes and access to cultural and recreational attractions. Of course, there’s a familiar caveat for anyone trying to make a life here: high housing costs continue to weigh on the city’s score, and don’t we know it. The report also points to climate-related challenges, including temperature and rainfall anomalies and bushfire risk, as factors affecting Sydney’s environmental ranking.
Sydney’s position is part of a broader picture in which established global centres continue to dominate the index. New York took first place, followed by London and Paris, while the top three remained unchanged from 2025. And while Sydney remains Australia’s highest-ranked city, its position has shifted over the past three years. The city placed seventh in 2025, after ranking 16th in 2024, meaning it has slipped six places since last year’s index, despite remaining firmly in the top 15.
The highest-ranking Australian cities in the Oxford Economics Global Cities Index 2026
Sydney leads the Australian contingent, but four other Aussie cities also landed in the global top 50. Here’s how the country’s highest-ranking cities performed:
- Sydney: 13th
- Melbourne: 16th
- Brisbane: 36th
- Perth: 44th
- Canberra: 45th
Melbourne ranked just behind Sydney, with a particularly strong economics score of 17th globally and an environment ranking of 49th. Brisbane placed 36th, and Perth and Canberra rounded out Australia’s top five at 44th and 45th respectively.
While Sydney’s fall from seventh to 13th is notable, the latest result still places it among the world’s leading cities. The index also highlights the challenges behind that standing, with housing affordability and environmental pressures remaining weaknesses alongside the city’s economic and institutional strengths. We hear you.
You can check out this year’s Oxford Economics, Global Cities Index over here – you’ll find the global rankings on pages 115–117 and Sydney’s city profile on page 69.
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