Why with Australian football fans, the idea of what club a fan supports or the clubs identity strictly comes from where the fan lives as well as where the club is located specifically within a city, east, west, north etc?
It's only one variable of many that differentiate people from supporting clubs within the same city. I lived and was working in Madrid, the reasoning or difference between Atletico Madrid supporters and Real Madrid supporters wasn't necessarily down to who lived south and north of Madrid. I quickly found out what their main difference was between the two clubs and their fans were and immediately became an Atleti supporter through feeling the same connection. Atletico supporters are hard working class people. I went to a pub and you could literally see the difference between the two fans. But thats just one other variable that could shape people's association with a football club. 
Another example was while I was living in Rome too. Roma aren't even located in the inner city of Rome, yet they have the majority of fanbase in Rome. Roma are the perfect example for both Victory and City to follow, but for this argument mostly City. Roma represents the whole of the city, as do Lazio, they have this inner city image like City and similarly too, they're not based within the inner city. Lazio is located next to the Stadio Olympico, while as mentioned Roma are located close to an hour away from the stadium (40 plus mins without traffic). Yet, many inner Romans, follow Roma regardless of where they're located.

There are other variables, people need to realise that. I for one don't live in the north, yet I'm a City supporter. 

Sometimes when you know very little about a subject it is best to be quiet.
I have made no comment on the new team in Sydney and if it will work. I do not live there so I would not have much of a idea to its success.

City are not from the northern suburbs. The northern suburbs do not identify with them. They do not play games (not even friendlies there). Victory have more of a connection with the northern suburbs than City do. This is City's issue. They have no connection with any area and that is why they have been a flop.
Western United will have that connection with an area once they get their stadium up and the population of that area grows.
Dandenong is an area that is set to go right now. 
For the A league to prosper it needs a strong presence in Melbourne. Melbourne will soon be the biggest city in Australia and it is certainly has the biggest sporting fan culture. Get it right in Melbourne and the rest will work. That is why City has been such a let down. No location. No fans. No big interest in A league in Melbourne and thus Australia.
This point is the key to the success of the A league. We need a Victory vs Somebody. Like SFC has with WSW (but it will be much bigger here if done correct). It will never happen with City. It might happen with MV vs WU but it is years away. It could happen with MV vs a Dandenong team in just a few years. 
This point is more important to success than a second division or any other matter. Melbourne is the key. If we can get good crowds to rugby here and amazing crowds to the rubbish that is AFL imagine how real football could take off in Melbourne. MC have been a huge mistake in achieving this outcome.

Melbourne won't be the largest city in the future, demographics not heading that way to that degree.. CIty are Northern suburbs prodominently and want a slice out of metro area as well. Best you don't blow hot air.

next time do everyone a favour and do a bit of research before hitting the Post button. it would have taken you 30 seconds to google.  

It's certainly true that there are other variables at play for a club identity than just geography. The ethnic ex NSL clubs also being a prime example.

The stats you got are fake news, you are alittle foolish.

No. https://www.smh.com.au/politics/federal/booming-melbourne-to-become-nation-s-largest-city-by-2026-20190327-p5186v.html

No. https://www.smh.com.au/politics/federal/booming-melbourne-to-become-nation-s-largest-city-by-2026-20190327-p5186v.html

Captain hindsight here and i can appreciate why the ffa went the one team per town model to give the financial backers some confidence and security.
But ultimately the best way Melbourne could've done it wouldve been South Melb at Bob Jane in rectangular format and Victory at Olympic Park in its first season.
That would've generated an extremely tasty rivalry from the get go.

Still no reason why Victory wouldn't have had strong rivalries with Syd and Adel at the same time.

And the problem is? As Heart they were on life support. City group acted as surgeons at the operating table and turned them financially into a powerhouse.

It's not a problem at all.

But without any sense of geographical or strong cultural identity to anchor themselves with, they then have to rely on Australian Manchester City fans (or non-Man Utd fans) to convert or win people over with success/champagne football.

They haven't really done any of that, bar one FFA CUP victory. Though they might be a financial powerhouse, relative CFG's wealth and expenditure with other CFG clubs, it's barely been flexed here. They've had Robbie Koren as a marquee (Not successful), David Villa (who only played four game and very clear that he didn't want to be here) and Tim Cahill (who left soon after). 

If their identity is simply Manchester City in Melbourne, well why don't they spend like it?

They dont spend because its been proven to not be a smart decision for a number of reasons.

This season the club had done more connecting to fans and building a strong culture than they ever have. I've noticed this season they're doing more things to connect the club to Melbourne than ever before. Sure there is still the CFG connotation there but inside 4 walls (being a member) there's less and less of this. CFG had learnt many lessons over the 5 years they've been here. I'm certain the biggest mistakes they've made are behind us. 
To people on the outside this may not be apparent yet. But if the club continue to do what they have been doing the last 6 months then people will start to take notice. And this coupled with success will make the club look very different in the eyes of the neutrals and naysayers. A lot has to go right. Time will tell. 

In the lack of geographical/social/cultural identity that anchors every other sporting club, I do believe success and excellent football is going to be the best (only) way for City to cut through the sporting landscape and carve out its own identity.

Why with Australian football fans, the idea of what club a fan supports or the clubs identity strictly comes from where the fan lives as well as where the club is located specifically within a city, east, west, north etc?
It's only one variable of many that differentiate people from supporting clubs within the same city. I lived and was working in Madrid, the reasoning or difference between Atletico Madrid supporters and Real Madrid supporters wasn't necessarily down to who lived south and north of Madrid. I quickly found out what their main difference was between the two clubs and their fans were and immediately became an Atleti supporter through feeling the same connection. Atletico supporters are hard working class people. I went to a pub and you could literally see the difference between the two fans. But thats just one other variable that could shape people's association with a football club. 
Another example was while I was living in Rome too. Roma aren't even located in the inner city of Rome, yet they have the majority of fanbase in Rome. Roma are the perfect example for both Victory and City to follow, but for this argument mostly City. Roma represents the whole of the city, as do Lazio, they have this inner city image like City and similarly too, they're not based within the inner city. Lazio is located next to the Stadio Olympico, while as mentioned Roma are located close to an hour away from the stadium (40 plus mins without traffic). Yet, many inner Romans, follow Roma regardless of where they're located.

There are other variables, people need to realise that. I for one don't live in the north, yet I'm a City supporter. 

In the lack of geographical/social/cultural identity that anchors every other sporting club, I do believe success and excellent football is going to be the best (only) way for City to cut through the sporting landscape and carve out its own identity.

I tend to agree. City is a club for the next generation or the generation after them. They are not going to see some massive upturn in membership/attendances in a year or two. Once they win some trophies or at least make a grand final or two, then they will start growing. People in Melbourne want winners, simple as that.
I don't like referring to the AFL, but this is a good example that illustrates the point. Richmond were pretty much rubbish-to-average all through the 90s and 00s. Their membership tally in 2010 was 35.9K. This is a club with a very long and rich history. After 9 years of building up their performances, becoming a top 8 side and winning some trophies they had 103.3k members this year. They nearly tripled their membership in less than a decade, simply by being successful. That's what it takes to win the fans over in Melbourne. I guarantee there are easily 20-30k+ city fans out there, but they are not going to commit to the club until they start demonstrating they can be properly successful.

I tend to agree. City is a club for the next generation or the generation after them. They are not going to see some massive upturn in membership/attendances in a year or two. Once they win some trophies or at least make a grand final or two, then they will start growing. People in Melbourne want winners, simple as that.
I don't like referring to the AFL, but this is a good example that illustrates the point. Richmond were pretty much rubbish-to-average all through the 90s and 00s. Their membership tally in 2010 was 35.9K. This is a club with a very long and rich history. After 9 years of building up their performances, becoming a top 8 side and winning some trophies they had 103.3k members this year. They nearly tripled their membership in less than a decade, simply by being successful. That's what it takes to win the fans over in Melbourne. I guarantee there are easily 20-30k+ city fans out there, but they are not going to commit to the club until they start demonstrating they can be properly successful.

The problem is that you're talking about a cyclical uptick in Richmond's membership that will come and go over the years, not their foundation of their fanbase as a club, which is something City is still struggling with.

How?  Their base is about 7-10k.  We know that its a base because thats the membership when they're winning nothing.  I wouldn't call it struggling, even as compared to many first tier European Leagues. 

And thats the problem- spectator sport in Melbourne is huge even as compare to the rest of the world

I won't believe any crowd figure over 3k for today's match. Wearing Heart's colours for a game won't be the solution.

So atm WU average 6,199 and city average 8,369

If WU had the stadium up and running, surely they'd be getting close to 10k? Would have a clear connection with the "West" of Melbourne.