Melbourne was recently ranked as the top 'tech city' in Australia and the 14th globally in a Savills UK research report.  Good scores in a variety of areas – infrastructure, business environment, technology talent pool and lifestyle – contributed to the city's high rating as a base for tech companies.  

Why Melbourne is such a 'tech magnet'

Tony Crabb, national head of research at Savills in Australia, said the rankings gave extra weighting to city livability factors such as 'buzz and wellness' that are likely to be increasingly valued by tech firms when choosing where to locate and attract talent. 

"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," Mr Crabb said in a Savills news release.

"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."

Catering to a new generation of worker

The Savills Tech City 2017 report quantified 'buzz' (culture, entertainment and nightlife), 'wellness' (healthcare, pollution, outdoor spaces and commuting times) and cost of living to create a 'city buzz and wellness index'. Physical and mental wellbeing is of increased importance to new generation tech workers and could therefore influence their decision making, the report suggested. 

Nicky Wightman, director of occupier services at Savills Worldwide, said that providing tech firms and startups with an environment to easily fit in and have access to funding is important for any city wishing to ride the tech wave. 

"However this alone won't necessarily make them attractive destinations. Young tech talent increasingly wants to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office," Ms Wightman said.

"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."

Strategically located in Asia Pacific 

Recently, the Victorian Government announced that American software firm AgileCraft would be opening its Asia-Pacific headquarters in Melbourne.

Victoria's Minister for Small Business, Innovation and Trade, Philip Dalidakis, told Savills that AgileCraft was another example of a leading tech multinational choosing the state as their entry point to the Asia-Pacific market.

"Over the past two years we have taken brand Victoria to the world, attracting more and more leading global companies to invest in the state's booming tech sector," Mr Dalidakis said.

Steve Elliot, CEO of AgileCraft explained that Melbourne's emergence as a tech hub and close proximity to the Asia market made it an ideal base for the company's regional office and plans to expand throughout the Asia Pacific.

"We consider ourselves to be an innovative company at AgileCraft and the Victorian Government made it clear to us that it is trying to attract innovative businesses to the state, so we look forward to being a part of the Victorian technology ecosystem," Mr Elliot said. 

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