What Can You Buy For Under $2 Million In Sydney’s Inner City And Inner West?

October 27th, 2023 - by Brad Gillespie

A budget of $2 million in Sydney’s inner city and inner west can go a long way, giving you access to some of the best apartments in our area and a great range of houses.

We explore exactly how far your money goes in our part of the world.

How realistic is finding a property under $2 million in Sydney’s inner city and inner west?

In Spring 2023, Sydney’s overall median dwelling price sits at just over a million dollars, or exactly $1,110,660, according to CoreLogic. The median house price sits higher, at $1,381,045.

In our area, it’s higher again, with the median dwelling value in Marrickville - Sydenham - Petersham coming in at $1,729,151. The area also tops Corelogic’s list of capital city “SA3 areas” for 12-month price growth, with the median value rising 15.2% over the past year.

In 2022, the Sydney Morning Herald reported that in Sydney, about 16% of homes are now worth $2 million or more, compared to just 5% across Australia.

While $2 million is simply an entry point for many of Sydney’s blue-chip suburbs, here in the inner city and inner west, there are many excellent properties for sale under the $2 million mark. This includes most three-bedroom apartments and great three-bedroom houses in many suburbs.

Across our area, the only things a budget of $2 million won’t stretch to are large homes with four or more bedrooms, unique properties or luxury penthouses. The rest should be within your price range

In fact, in some suburbs, $2 million won’t be far off the suburb record. For example, the current suburb record in Waterloo, set this year, is $2,570,000.

Here’s a breakdown of the median values for houses and three-bedroom apartments in some of the suburbs in Sydney’s inner city and inner west.

Suburb Median Value House Median Value Three-Bedroom House Median Value Three-Bedroom Apartment
Alexandria $1,855,000 $1,855,000 $1,590,000
Waterloo $1,645,000 n/a $1,332,500
Camperdown $1,780,000 $1,950,000 n/a
Erskineville $1,760,000 $1,887,500 n/a
Redfern $1,592,500 $1,880,000 $1,665,000
Rosebery $2,050,000 $1,910,500 $1,312,500
Newtown $1,750,000 $2,019,000  n/a
Marrickville $1,890,000 $1,895,000 $1,205,000

* Source: realestate.com.au suburb profiles, accessed 19 October 2023

The buyers interested in homes under $2 million

According to Domain Insight, around 15% of buyer searches in Sydney fell within the $1.5 million to $2.5 million price range.

At this price point in our area, we mainly see owners/occupiers, although there are some investors.

This price point is generally popular with upsizers either looking for that third bedroom or making the leap from an apartment to a house. They usually capitalise on the equity in their existing property to make the next step in their property journey.

We also see an increasing number of downsizers in this price range too - many moving to Sydney’s inner city and inner west from much larger homes in other areas. As cash buyers, they often have deep pockets and compete head-to-head for houses and large apartments with growing families and professionals.

While they only make up a smaller proportion of buyers at this price point, we do see a few first-home buyers. Given the upfront costs, these buyers tend to be older. Otherwise, they often have help from the bank of Mum and Dad. After all, putting together a 20% deposit on a $2 million home means saving $400,000. And that’s even before the Transfer Duty of $93,055.00.

Which Sydney inner west suburbs are best for buyers under $2 million?

For $2 million, buyers should be able to find both apartments and houses in every single suburb across the inner city and inner west. However, exactly what you’ll be able to afford depends on the suburb.

Your money will tend to go further in Waterloo or Redfern, for instance, than it will in Alexandria or Newtown. And you’ll likely get far more space for the same amount - or pay less for the same space - in Marrickville or Rosebery than in a suburb closer to the city.

What can you buy in Sydney’s inner west for under $2 million?

There are some great properties for sale at this price point right now in Sydney’s inner city and inner west. Here are some of our most recent sales.

8 Maddox Street, Alexandria: A gorgeous four-bedroom family home that makes the most of its unique indoor/outdoor entertaining area on the ground floor, it sold for $1,878,000 in October 2023.

286 Belmont Street, Alexandria: A two-bedroom home in a quiet leafy street, this house presented an excellent opportunity for those looking to move from an apartment to a house. It offered two bedrooms and scope to add another level (STCA) and sold for $1,980,000 in October 2023.

302/92 Buckland Street, Alexandria: This stunning three-bedroom penthouse in The Buckland offered a fabulous 169 sqm on title and lift access, making it perfect for downsizers. It sold in September 2023 for $2,075,000.

16 Kensington Street, Waterloo: A three-bedroom tri-level townhouse in “Kensington Mews” with around 228 sqm of living space and a communal pool, it sold for $1,650,000 in October 2023.

77A Princes Avenue, Rosebery A two-bedroom house in walking distance to Green Square, it sold prior to auction for $1,510,000 in October 2023.

Looking for a home under $2 million in Sydney’s inner city or inner west?

Get in touch with me today to find a property that suits your needs.