Cost Comparison 2025

Cape TownvsMelbourne

South Africa
Australia

Overall

💰

+70.0%

Cape Town is 70.0%more expensive

Rent

🏠

+85.7%

Housing is 85.7% higher

Dining

🍽️

+70.0%

Restaurants 70.0% pricier

Groceries

🛒

+77.8%

Food shopping 77.8% more

Comparing the cost of living between Cape Town, South Africa and Melbourne, Australia reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Cape Town is more expensive than Melbourne by approximately 70.0%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in Cape Town are lower than in Melbourne by 46%. A one-bedroom apartment in Cape Town's city center costs around ZAR 12,000, while the same in Melbourne is approximately A$2,200.

Dining out in Cape Town offers significant savings compared to Melbourne. An inexpensive restaurant meal costs ZAR 150 in Cape Town versus A$20 in Melbourne.

Public transportation in Cape Town is more expensive, with monthly passes at ZAR 800 compared to A$170 in Melbourne.

Purchasing power in Melbourne is notably stronger, meaning residents can afford more goods and services with their local salaries compared to Cape Town.

Grocery shopping in Cape Town is more affordable by approximately 44%. Basic items like milk, bread, and eggs show lower prices across the board.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in Cape Town can expect to spend approximately ZAR 5,890 per month (excluding rent), while in Melbourne, the same lifestyle would cost around A$786. For families, these figures increase significantly, with a family of four requiring about ZAR 20,615 monthly in Cape Town versus A$2,750 in Melbourne. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
Cape Town, South Africa
Melbourne, Australia

🏠 Housing Costs (Monthly Rent)

1BR City Center
ZAR 12,000
A$2,200
1BR Outside Center
ZAR 8,000
A$1,700
3BR City Center
ZAR 25,000
A$4,000

🍽️ Food & Dining

Meal, Inexpensive Restaurant
ZAR 150
A$20
Meal for 2, Mid-range Restaurant
ZAR 700
A$110
Cappuccino
ZAR 35
A$5
Domestic Beer (0.5L)
ZAR 35
A$10

🛒 Groceries

Milk (1L)
ZAR 25
A$2
Bread (500g)
ZAR 15
A$3
Eggs (12)
ZAR 35
A$5
Cheese (1kg)
ZAR 120
A$11

🚌 Transportation

One-way Ticket
ZAR 20
A$5
Monthly Pass
ZAR 800
A$170
Taxi Start
ZAR 20
A$5
Gasoline (1L)
ZAR 23
A$2

💡 Utilities & Internet

Basic Utilities (85m²)
ZAR 1,500
A$180
Internet (60 Mbps)
ZAR 800
A$75
Mobile Minute
ZAR 2
A$0

Tips for Moving Between Cities

For those considering a move from Cape Town to Melbourne, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from Melbourne to Cape Town requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

Cape Town

Cost of Living Index50
Rent Index35
Purchasing Power Index60

Melbourne

Cost of Living Index85
Rent Index65
Purchasing Power Index100

Frequently Asked Questions

Is Cape Town more expensive than Melbourne?

Yes, Cape Town is approximately 70.0% more expensive than Melbourne overall. The biggest differences are in housing and restaurant prices.

How much salary do I need in Cape Town compared to Melbourne?

To maintain the same standard of living, you would need approximately 1.7x of your Melbourne salary when living in Cape Town. For example, if you earn $50,000 in Melbourne, you'd need about $85,000 in Cape Town for a comparable lifestyle.

What are the biggest cost differences between Cape Town and Melbourne?

The most significant cost difference is in housing. Rent prices differ by approximately 46%, making it a major factor in your budget planning. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Melbourne offers better purchasing power, making it more attractive for those earning in strong currencies. However, Melbourne provides lower living costs, which benefits budget-conscious travelers. Consider Cape Town if you prioritize cultural experiences, or Melbourne for better value.

What's a reasonable monthly budget for Cape Town vs Melbourne?

In Cape Town, a single person needs approximately ZAR 13,890 per month (including rent), while a family of four requires about ZAR 38,615. In Melbourne, these figures are A$2,486 for singles and A$5,550 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Cape Town and Melbourne in 2025 shows significant differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in Melbourne to maintain your lifestyle from Cape Town

Calculate Salary Equivalence

Last updated: 2025-01-28 • Data sourced from multiple providers