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I have a projects list that displays all current projects that are active, each project will have a unique project number for example:

S16-0001 (This means Sydney 2016 and the number of the project)

B16-0001 (This means Brisbane 2016 and the number of the project)

M16-0001 (This means Melbourne 2016 and the number of the project)

What I would like it to show the last entered project number for each city when a user adds a number project to the list

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You could have a workflow start every time a new Project List item is created which will update items in a helper list which is then displayed in the form.

So, let's say someone creates Project S16-0042. The workflow checks which city this project belongs to and then updates the corresponding item in the helper list.

City    | Latest Project Number
------------------------------
Sidney  | S16-0041 >> S016-0042
Brisbane| B16-0035
...

Finally you can add a List View Webpart of the helper list on the NewForm.aspx of the Project List and apply some styling to make it look like in your mock-up.

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