Tourists walk around Gyeongbok Palace in Seoul, Sept. 17, 2023. Korea Times photo by Choi Won-suk

Seoul is the most cost-effective city to live in globally, according to Compare the Market Australia, a price comparison service.

The company analyzed 11 different cost-of-living factors, including average fuel and electricity prices, average annual wage and unemployment rate. Public transport, home prices, rent, milk, bread and cappuccino prices were also compared across 42 economically developed cities.

Seoul ranked first as the most cost-effective city to live in, with the lowest unemployment rate out of all 42 cities studied, at 2.5 percent. The study noted that a combination of low housing and rent price increases since 2015 and cheap average electricity rates allowed Korea's capital to be at the top.

However, Seoul reported relatively higher prices for milk and bread.

It also had low average annual wages compared to other cities.

Following Seoul were Australia's Brisbane and Luxembourg City, the capital of Luxembourg. Ultra-low public transport fares and comparatively cheaper average fuel prices helped Brisbane rank as one of the most cost-of-living-friendly cities, while Luxembourg benefited from high average wages and free public transport access.

Meanwhile, Reykjavík of Iceland, Copenhagen of Denmark and Dublin of Ireland were cited as the least cost-of-living-friendly cities.

"While Seoul, Brisbane and Luxembourg ranked at the top of the index, no city received a score higher than 6.7 out of 10 — demonstrating that no place is entirely perfect for those seeking cost-of-living relief," Stephen Zeller, Compare the Market's general manager of money, said.