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10. (Tied) Sydney, Australia

Climbing one spot from last year, Sydney breaks into the top 10 best places to live this year as the only Australian city to make the rankings. However, it is one of five Australian cities to rank within the top 30 – highlighting the country's prominence for the quality of life it offers.

As Australia's economic hub and most populated city, Sydney is a favored destination in the Asia-Pacific region to live and work. Its metropolitan area is set in one of the world's most stunning harbors and is surrounded by national parks, bays, rivers, and beaches. Sydney is also the headquarters of about 40 percent of the top 500 Australian firms, and 44 percent of its broadcasting industry is located here.

The city also ranks eighth in the world for its infrastructure based on Mercer's ranking. The survey took into account factors like electricity and water supply, transportation and traffic congestion. In comparison to the rest of the Asia-Pacific region, both Australia and New Zealand also far outweigh their peers in living standards and personal safety. Singapore is the highest ranked Asian city at 25, followed by Toyko at 44.

Izzet Keribar | Getty Images