Sydney’s scenic eastern suburbs and the idyllic lower north shore may hold the city’s most recognisable harbour views, but this year’s buyer trends tell a very different story. According to Domain’s End of Year Wrap Report for 2025, the city’s clear front-runner for property demand is the Inner West—home to nine of Sydney’s top ten most-viewed suburbs for both houses and units.
Inner West Dominates Buyer Demand
Dr. Nicola Powell, Domain’s Chief of Research and Economics, says the trend reflects a growing shift toward “character, community, and village-style living.” The Inner West has become the perfect blend of neighbourhood charm and urban convenience—close to the CBD, rich in heritage homes, and known for its tight-knit communities.
These suburbs also have limited new housing supply and low turnover, as many residents choose to stay long term. This creates strong competition whenever properties do hit the market, pushing views—and prices—upward.
1. Birchgrove: Sydney’s Most Sought-After Suburb
Leading the list is Birchgrove, a picturesque pocket on the north-west end of the Balmain peninsula, just 5 km from the CBD.
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Median house price: $3.2 million
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Annual growth: 15.1%
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Total house sales (12 months): 59
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Owner-occupier rate: 41% own outright (above the Sydney average of 31%)
With harbour outlooks, leafy streets, and easy ferry and bus access, Birchgrove appeals strongly to downsizers and young families seeking a premium lifestyle with village charm. Local agent Monique Dower says the combination of views, accessibility, and a shortage of new development makes it one of Sydney’s most competitive markets.
2. Stanmore: Character Homes and Cosmopolitan Living
Just a short drive away, Stanmore takes second place.
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Median house price: $2.375 million
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Annual house price growth: 8%
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Unit price: $955,000 (up 17.9%)
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Houses sold: 77
With wide tree-lined streets and a quieter pace compared to neighbouring suburbs, Stanmore offers strong value while still being only 10 minutes to Wynyard by train. Local agent Jonathan Hammond describes it as “cosmopolitan without being congested,” making it a favourite for buyers seeking balance.
3. Paddington: The Eastern Suburbs’ Standout
The only suburb outside the Inner West to crack the top 10 is iconic Paddington, known for its Victorian terraces, lively cafés, and boutique shopping.
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Median house price: $3.75 million
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Annual growth: 15.1%
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Unit price: $1.05 million
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Houses sold: 215
Its lifestyle, location, and character homes keep demand strong year-round, attracting buyers from the north shore and affluent eastern suburbs such as Woollahra and Bellevue Hill.
Other Top-Performing Suburbs
The remaining hotspots—Annandale, Balmain, Marrickville, Haberfield, Enmore, Lilyfield, and Newtown—all sit firmly within the Inner West. Each has its own unique appeal, from heritage architecture and buzzing dining strips to excellent transport links.
Why the Inner West Will Keep Rising
Dr. Powell expects the Inner West’s popularity to continue well into the future.
Sydney’s broader property market is once again in a growth phase, and the Inner West’s limited supply of character homes means demand will likely keep outstripping availability. As each new listing attracts intense competition, prices are poised to keep climbing.
“There is so much interest in each property that comes up, and so many people competing for each,” Dr Powell says.
Final Thoughts
The 2025 data makes one thing clear: Sydney buyers are prioritising lifestyle, convenience, and character-filled neighbourhoods—and the Inner West delivers on all counts. Whether you’re looking for heritage charm in Stanmore, harbour beauty in Birchgrove, or a buzzing cultural scene in Newtown, this region continues to set the benchmark for desirability in Sydney’s property market.
