An Aussie city has just topped the world’s best cities list, and the reasons go beyond food and culture — from where people live to how the city continues to grow.
Melbourne has been named the world’s best city for 2026 by Time Out, with the global guide pointing to the city’s neighbourhood culture, accessible transport and everyday liveability.
Melbourne topped Time Out's 50 Best Cities list for 2026. Picture: Getty
While the ranking highlights food, culture and major events, it also reflects how Melbourne is evolving as a place to live.
As the city attracts new residents from interstate and overseas, new homes are being delivered in locations that support the lifestyle it’s known for.
Here are three reasons why Melbourne deserves its spot on the top of the list — and how new housing is helping the city keep pace.
1. The ‘cool’ factor
Melbourne’s appeal has long been driven by neighbourhoods with strong identity, and Fitzroy is one of the clearest examples — known for its live music venues, independent retailers, cafés and close proximity to the CBD.
The Regent in Fitzroy offers a 315sqm rooftop terrace with barbeque facilities and panoramic views. Picture: realestate.com.au
New apartment developments in the suburb are adding homes within this established inner‑city setting, giving more people the opportunity to live close to the culture that defines Melbourne life.
Fabbrica by Pace Development Group is delivering a mix of apartments and townhouses informed by Fitzroy’s manufacturing and industrial heritage.
The development includes shared rooftop spaces designed for work, dining and socialising, with interiors by Melbourne studio Winwood McKenzie and architecture by SJB.
Nearby, The Regent by SMA Projects is rising on the former site of the historic Regent Theatre, drawing on the area’s cultural past through its architectural and interior design.
Designed by Hayball with interiors by Studio Tate, the development includes shared rooftop facilities, a concierge and resident amenities.
2. Better transport, better connected homes
Melbourne’s expanding transport network is improving where people can comfortably live, supported by draft maps identifying train and tram activity centres as priority areas for more housing and services.
The Eighth in South Melbourne is just steps away from the new Anzac Metro Station. Picture: realestate.com.au
The Metro Tunnel, which opened in November 2025, has improved connections between inner‑city precincts and major employment hubs. Its new Anzac Station is opening up parts of South Melbourne, St Kilda Road and the Arts Precinct to apartment developments close to public transport and jobs.
The Eighth, located near the Royal Botanic Gardens, is a boutique apartment development designed with a limited number of residences per floor and a strong emphasis on resident amenity.
The building includes shared wellness and rooftop facilities and sits within walking distance of parkland, cultural venues and public transport connections linking directly into the CBD.
Also nearby, First Light by DCF Property at Albert Road is a smaller collection of apartments designed by Yoo Studio, with interiors by Léo Terrando.
The development incorporates high‑quality materials, smart building technology and shared amenities, and benefits from close access to the new Anzac Station.
3. Homes designed around lifestyle, not just location
As Melbourne grows, the focus isn’t just on adding homes — it’s also on how those homes are designed and how they support everyday living over the long term.
A render of what the new Fitzroy Gasworks precinct could look like. Picture: Development Victoria
A growing share of Melbourne’s newest housing is being delivered through build‑to‑rent (BTR) developments, where long‑term renting, shared amenities and flexibility are central to the model.
Local is one provider with projects across Melbourne, including Southbank, Docklands, South Melbourne, Box Hill and Kensington.
Its Kensington development is supported by shared facilities such as workspaces, resident lounges, fitness areas and outdoor spaces, while also benefitting from strong public transport access close to parks, cafés and everyday services.
Further north, the BTR operator has been appointed to deliver the third and final parcel at Fitzroy Gasworks, a new neighbourhood set to rise on the former gasworks site.
Local is set to deliver around 360 BTR apartments, including more than 100 affordable dwellings, alongside existing community infrastructure such as the Wurun Senior Campus and Bundha Sports Centre.
Are you interested in learning more about buying and building new? Check out our New Homes section.
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