The second most populous city in Australia maintained a leading edge over the 140 cities surveyed for the report, followed by Vienna, Vancouver, Toronto and Calgary.
Overall, the results of the study suggest that Canada and Australia are the best countries for quality of life, as both countries scored three spots each in the top 10 list.
Conspicuously absent from the ranking are cities from the US and Asia.
The survey assesses cities based on five broad categories: stability, healthcare, culture, environment and infrastructure.
According to analysts, the top-ranked cities share a few common denominators. They tend to be mid-sized cities in wealthier countries, with relatively low population density. They offer a range of recreational activities, low crime levels and smart, stable infrastructure.
The report also points out that while the top five cities remain unchanged, rising global instability caused a reshuffling this year, knocking Sydney out of the top 10 list due to a heightened perceived threat of terrorism, and pushing Hamburg, Germany up to 10th place.
The spate of terrorist attacks last year also caused Paris to experience a sharp decline, while growing unrest linked to the Black Lives Matter movement in the US likewise drove US cities further down the list.
At the other end of the spectrum, Damascus, Syria landed at the bottom of the heap, followed by Tripoli, Libya, Lagos, Nigeria, Dhaka, Bangladesh, and Port Moresby, Papua New Guinea.
Here are the results:
The top 10 most liveable cities
1. Melbourne, Australia
2. Vienna, Austria
3. Vancouver, Canada
4. Toronto, Canada
5. Calgary, Canada
6. Adelaide, Australia
7. Perth, Australia
8. Auckland, New Zealand
9. Helsinki, Finland
10. Hamburg, Germany
The top 10 least liveable cities
1. Damascus, Syria
2. Tripoli, Libya
3. Lagos, Nigeria
4. Dhaka, Bangladesh
5. Port Moresby, Papua New Guinea
6. Algiers, Algeria
7. Karachi, Pakistan
8. Harare, Zimbabwe
9. Douala, Cameroon
10. Kiev, Ukraine