According to the Economist I live in the world’s second most liveable city:
Here is the justification for the rankings:
While liveability considers factors of recreational and cultural activity, the "big city buzz" can hamper the scores of some cities, although not to the extent that a city will present significant challenges. Global centres such as New York, Tokyo, London, Hong Kong and Paris may find themselves let down precisely because of their size and attractiveness. Traffic congestion and higher crime rates associated with large urban centres have, to some extent, offset the obvious cultural gains of living in such locations. This has also been compounded by fears that large centres like London and New York will remain targets for high-profile terror attacks. Despite this, most major centres do not present any significant challenges to liveability.
Melbourne is a good place to live. The restaurants are excellent, plenty of shopping opportunities, lots of public parks, the sports scene can’t be beat, vibrant night life, among a host of other things to like about Melbourne. However with that said, the traffic can be quite bad here though no where near as bad as Sydney and the mass transit here could be better. I’m spoiled from using mass transit in NE Asia which no where in Australia can match. Besides that I really have no other complaints about Melbourne. For a large metropolitan city it is a good place to live.
You can read more over at Metroblogging Melbourne.