They fly over a wrecked city, but they don't show where they land and start living. Do they live in that city or fly on to some other location? If so, where?
They are seen living in the city at the end of the movie. They have lit lanterns and fires in the ruins to create all the city lights from their stories of Tomorrow-morrow land, and as the narrator says, to guide Max there.
The city is Sydney, there are a few famous landmarks shown including a broken part of the Sydney Harbour Bridge and the Opera House.
Footage of the models used can bee seen here.