Melbourne

Set around the shores of picturesque Port Phillip Bay on the south-east corner of Australia sits Victoria's capital Melbourne, the second most populous city in the country.

Melbourne has been ranked in the top three "World's Most Livable Cities" by The Economist since 2002, and it's not difficult to see why - a mixture of slick sophistication and bohemian cool, Melbourne is famous for its world-class dining, shopping, creative arts, sporting events and entertainment venues.

At the heart of the city lies the Central Business District, laid out in a large, tidy grid on the northern banks of the Yarra River. More than just the home of big business, the CBD is also Melbourne's cultural and recreational hub, and the centre of the city's nightlife.

Eating and drinking is a favourite pastime in and around the CBD, and diners aren't short of options - Melbourne boasts more than 5000 restaurants and cafes. Luckily, the city's food and wine is top-notch, and most Melburnians would argue that its coffee is best in the world.

Another source of Melburnian pride is the city's thriving sporting culture; sport is something of an obsession throughout the whole of Victoria, and Melbourne is no exception. For many, the passion continues year-round, but there are a few events that really stop the city - the AFL Grand Final (Aussie Rules Football), the Melbourne Cup (horse racing), the Australian Open (tennis) and the Grand Prix (motor racing).

Extending beyond the fringes of the CBD lie a number of lively neighbourhoods that bring their own distinctive character to the city. Suburbs like St Kilda, Carlton and Fitzroy house thriving creative communities that produce some of the city's best art, music, cuisine, fashion and theatre.

As varied and surprising as its famously temperamental weather, undeniably “livable” Melbourne look set to hold onto its number three spot for a long time to come.