John, I'm not seeing this behavior. When I type "Sydney" in as a new
Location, I get a dropdown showing me posible matches. (See attached
screenshot)

So the next step is to figure out whether the problem you're seeing is
an issue with the location database like you guessed, or perhaps an
interface issue, or something else.

Could you walk me through the exact click-by-click steps you're going
through when you add a new location?

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https://bugs.launchpad.net/bugs/979287

Title:
  Can't add 'other locations' for clock in 12.04

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