Results from the national poll, My City: The People's Verdict, shows Canberra was ranked a close second followed by Hobart and Newcastle, each with only 0.1 difference in livability points.
Darwin took out the wooden spoon with Sydney coming second-last.
Property Council Chief Executive, Peter Verwer says these results should be a wake-up call for governments.
“In this federal election year, the onus is on the political parties to respond to the survey with policies to address the growing problems in our cities,”
“This is the people's verdict on their own city – a report card for governments on how liveable our cities are,” Mr Verwer said.
Overall Australians were most displeased by housing, public transport services and traffic congestion in their cities, but generally scored highly on education and environmental facilities.
According to the Property Council of Australia, the report shows that most Australians want more Federal Government action to improve cities.
“We need a nation-wide effort to boost the performance of our cities to meet the challenges of the future: population, housing, infrastructure and a strong economy," Mr Verwer said.