Melbourne tops tech rankings

The Melbourne CBD.

Melbourne’s status as one of the world’s most liveable destinations has seen it officially ranked as one of the world’s top ‘tech cities’, according to new research.

Melbourne was the top-ranked Australian ‘tech city’ and the 14th in the world, in a Savills’ study that graded cities based on business environment, city buzz and wellness, tech environment, talent pool and real estate costs.

US cities Austin, San Francisco and New York led the rankings, followed by London, Amsterdam and Toronto.

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But while Melbourne lagged behind in the business environment and tech environment categories, it made up significant ground for its talent pool and city buzz and wellness – a metric in which it ranked eighth in the world – lifting it ahead of global power cities Seoul, Hong Kong and Tokyo.

Savills Australia national head of research Tony Crabb says Melbourne’s liveability continues to be a boon for business, particularly in the flourishing tech industry.

“Everybody here knows Melbourne’s reputation as the world’s most liveable city, a title it has taken for six consecutive years, and so it is not surprising to see how well Melbourne ranked on this metric,” Crabb says.

Melbourne CBD office tech city

Melbourne’s reputation as a ‘tech city’ is growing.

“That single factor may well prove, more than any other, the most critical factor in further establishing and maintaining Melbourne‘s pre-eminence in what is increasingly one of the most important employment and growth industries in the country.”

The research comes as some global tech firms choose Melbourne as their local base, including Texas-based software company AgileCraft, which in December announced it would open an Asia-Pacific headquarters there.

Savills director of Worldwide Occupier Services, Nicky Wightman, says infrastructure and funding were no longer the only considerations for tech companies when deciding where to base themselves.

“Young tech talent increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office,” Wightman says.

“Cities that deliver those environments are therefore likely to consolidate their positions as destinations for tech talent and occupiers who want to attract the best staff.”