After seven years in the top position, Melbourne was bumped to number two, displaced by the Austrian capital, Vienna. It is the first time it has topped the EIU survey, which began in its current form in 2004.
EIU attributes Austria's capital's rise to the top to increased security scores due to a return to relative stability across much of Europe after high-profile terrorist attacks in recent years.
Though both cities actually improved upon their 2017 liveability scores - which are judged based on their performance in the categories of stability, healthcare, culture and environment, education, and infrastructure - Vienna nudged Melbs off the top of the list.
Vienna was ideal in every category except culture and environment, where it scored 96.3 out of 100. The city was also ranked ahead of London in last year's survey.
Japan's Osaka and Tokyo have now moved up into the top ten, coming in third and seventh place respectively.
Some of the lowest murder rates in the world a year ago were recorded in Austria and Japan.
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The others in the most liveable cities in 2018 are 2.
In fact, three Australian cities entered the top 10 while another three came from Canada.
With an overall rating of 91.2, Singapore ranked behind Melbourne, Osaka, Sydney, Tokyo, Adelaide, Auckland, Perth, Brisbane, Wellington, and Hong Kong among Asian cities in the latest EIU survey released on Tuesday (14 August).
The survey also looked at cities where long-term improvements had been made.
The 10 least liveable cities are Senegal's Dakar on 131, Algeria's Algiers 132, Cameroon's Douala 133, Libya's Tripoli 134, Zimbabwe's Harare 135, Papua New Guinea's Port Moresby 136, Karachi, 137, Nigeria's Lagos 138, Dhaka 139 and Damascus is on 140, the report said. Abidjan, Côte d'Ivoire; Hanoi, Vietnam; Belgrade, Serbia; and Tehran, Iran saw the largest improvements in liveability over the last five years - more than five percentage points.