{"id":27875,"date":"2022-04-21T12:34:19","date_gmt":"2022-04-21T05:34:19","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=27875"},"modified":"2022-06-02T18:35:25","modified_gmt":"2022-06-02T11:35:25","slug":"melbourne-cedes-its-status-as-the-worlds-most-liveable-city-to-auckland","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/melbourne-cedes-its-status-as-the-worlds-most-liveable-city-to-auckland\/","title":{"rendered":"Melbourne cedes its status as the world\u2019s most liveable city to Auckland"},"content":{"rendered":"

Melbourne\u2019s pandemic woes have dented its armour and left the door open for Auckland<\/p>\n

\"\"
Harsh lockdowns left Melbourne’s CBD lying ghostly and empty for long periods<\/figcaption><\/figure>\n

Sometimes a predictable setback can hurt as much as a dramatic fall from grace.<\/p>\n

Such is the case with Melbourne, the state capital of Victoria in Australia, whose treasured reputation as one of the world\u2019s most desirable cities in which to live has suffered due to its rocky (to say the least) pandemic.<\/p>\n

When The Economist Intelligence Unit published its latest global liveability rankings in June 2021, it reflected what many people had been expecting.<\/p>\n

Auckland, New Zealand\u2019s booming capital, was named the world\u2019s most liveable city. Melbourne dropped to eighth spot after eight consecutive years at the top of the list, tied with Geneva in Switzerland and below rival Aussie cities Adelaide and Perth.<\/p>\n

Melbourne\u2019s precipitous fall attracted headlines. But after a pandemic marked by rolling lockdowns\u2014including a brutal four-month stint that was one of the world\u2019s strictest\u2014few analysts were surprised at the very public hit.<\/p>\n

Indeed, the ability to contain the spread of the pandemic while maintaining a high quality of life and freedoms for residents was a key factor in Auckland\u2019s ascendancy.<\/p>\n

\u201cThe progression for Auckland\u2019s rank is predominantly because of New Zealand\u2019s ability to enforce strong border closures and control the spread of the virus effectively,\u201d says Akshay Rathi, a researcher at the Economist Intelligence Unit.<\/p>\n

Kiwi premier Jacinda Ardern\u2019s \u201czero-Covid\u201d strategy has attracted its share of criticism. But life in New Zealand has been allowed to continue largely as normal during the pandemic, albeit with periodical restrictions and some of the world\u2019s tightest border controls.<\/p>\n

Contrastingly, the policies enacted by Victoria\u2019s Labor state government led by Premier Daniel Andrews have been bitterly divisive.<\/p>\n

Melbourne was locked down six times for a total of 263 days. Victoria\u2019s debt burden is anticipated to reach almost AUD200 billion by 2025 on the back of pandemic-related relief and loss of revenue. With the state\u2019s credit rating downgraded to the lowest of any Australian state or territory, the economic outlook for Victoria remains challenged at best.<\/p>\n

Some Victorians savage \u201cDictator Dan\u201d for botching the hotel quarantine system that paved the way for a serious outbreak and the longest, most stringent lockdown. Others hail him as a leader willing to take tough decisions to quell the virus. What Melburnians of all stripes agree on is the damage the last two years has inflicted upon both \u201cBrand Melbourne\u201d and the city\u2019s real economy.<\/p>\n

\u201cIt would be remiss not to acknowledge that government handling of the pandemic was part of The Economist\u2019s Intelligence Unit criteria for assessment in 2021,\u201d says Rob Burgess, national director of research and strategy at property advisory experts Charter Keck Cramer.<\/p>\n

\u201cMelbourne\u2019s ability to rebuild its brand and perhaps, more importantly, the attributes which made it so desirable in the first place are highly unlikely in the next two to three years. Beyond that, only time will tell. The current trajectory must be halted to enable a new sense of optimism and confidence.\u201d<\/p>\n

\"\"
Victorian Premier Daniel Andrews is in line for reelection this year, but faces tough economic challenges<\/figcaption><\/figure>\n

Observers agree that the pandemic has exacerbated Melbourne\u2019s woes. But they say that cracks were apparent in the city\u2019s finely honed fa\u00e7ade before the global health crisis. Long-term challenges include housing unaffordability, increasing congestion, and an economy heavily reliant on population growth and deteriorating productivity.<\/p>\n

Melbourne is growing faster than most cities of similar size in developed countries. Population growth averaged more than 2.5% a year between 2011 and 2018. Activities and jobs have been buoyed by this strong growth.<\/p>\n

However, the downside has been increased demand for healthcare, education, and other essential and recreational services. It has also placed increasing stress on the city\u2019s public services and transport system. These factors have contributed to making one of the world\u2019s most liveable cities increasingly less habitable.<\/p>\n

More: Shelters from the storm: Asia\u2019s best luxury boltholes<\/strong><\/a><\/p>\n

Inequality, meanwhile, continues to plague the city\u2019s housing market. Median house prices reached another record high, soaring to AUD1.1 million in the final three months of 2021 on the back of buyers rushing back to the market after the city\u2019s sixth lockdown.<\/p>\n

Despite these challenges, Melbourne\u2019s brand is far from completely tarnished. The city is famed for its outstanding arts scene, is home to several big-ticket sporting events, and has some of Australia\u2019s finest restaurants. And population pressures have not altered the fact that the city retains high standards in healthcare and education as well as enviable infrastructure.<\/p>\n

What is now required is a genuine focus on the many day-to-day challenges faced by Melburnians. Awards are nice, but only direct actions that deliver substantive change matter<\/p><\/blockquote>\n

Most observers agree that Melbourne\u2019s long reign at the head of the global liveability index is over for at least the next couple of years. But they don\u2019t necessarily buy into the notion that it has been superseded by its rival across the Tasman Sea.<\/p>\n

\u201cIn my view, Melbourne has a better education system and sports and entertainment highlights than Auckland and job opportunities are better than in New Zealand,\u201d says Benson Zhou, director of Asia markets for Savills Australia. \u201cYou can see that by how many Kiwis come over every year to live here. Lockdown is a big issue. But we are resilient and will bounce back.\u201d<\/p>\n

More: Proptech, a mainstay in future real estate transactions<\/strong><\/a><\/p>\n

Resilient too is Labor\u2019s hold on power in Victoria. Despite the trials of the pandemic, polling ahead of the 2022 state elections\u2014to be held in November\u2014looks promising for the incumbent administration. With Australia adopting a strategy of living with the pandemic, harsh lockdowns may be a thing of the past. But Andrews and his government have a host of other issues to address as they bid to turn things around for the state and its biggest city.<\/p>\n

Burgess concludes: \u201cDo I think the liveability index matters? No, what is now required is a genuine focus on the many day-to-day challenges faced by Melburnians. Awards are nice, but only direct actions that deliver substantive change will matter.\u201d<\/p>\n

The original version of this article appeared in\u00a0Issue No. 171<\/a>\u00a0of\u00a0PropertyGuru Property Report Magazine<\/a>. Write to our editors at\u00a0propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Melbourne\u2019s pandemic woes have dented its armour and left the door open for Auckland <\/p>\n","protected":false},"author":9,"featured_media":27876,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[97,92],"tags":[184,149,2781,272,181],"class_list":["post-27875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-magazine","category-news","tag-auckland","tag-australia","tag-liveable","tag-melbourne","tag-new-zealand","news_country-australia","news_author-liam-aran-barnes"],"acf":[],"yoast_head":"\nMelbourne cedes its status as the world\u2019s most liveable city to Auckland | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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