The Most Underrated Suburbs in Sydney’s Inner West

Everyone swears their suburb is it. 

Newtown. Marrickville. Drummoyne. Maybe Balmain if they’re feeling crazy. And look, I get you, I’d say the same about my suburb. But calling them underrated in 2026 is like calling the Knicks underrated (Go Knicks). These suburbs are ones the Eastern Suburb snobs already know about. The Vaucluse kids are already moving into those areas. 

So here’s a list I cooked up. Being on the frontlines leading one of the highest performing teams in Inner West Real Estate. The most underrated suburbs the IW has to offer:

Lewisham

Lewisham is the suburb that people drive through to get somewhere else. A cross roads suburb.

It sits between Petersham and Stanmore, inherits the infrastructure of both, and prices below either. The housing stock is Victorian and bungalow-heavy. Lewisham has something, just quietly, that Stanmore and Petersham doesnt have. Theres a sense of brilliance amongst almost all locals and residents. Walk along The Boulevarde, you’ll see what I mean. 

Hurlstone Park

Before you start, I know! Its technically Canterbury-Bankstown. 

But, ill tell you what… Hurlstone Park being 5 mins from Marrickville, bordering Dulwich Hill and with a metro train line in it’s heart. 

Young families, whats not to love about it?

Massive blocks, front yards, backyards, ultra leafy and calm residential streets. As the Inner West has densified, that profile has become rarer and more valuable, and Hurlstone Park has it in abundance and people dont realize, because it doesnt show up in REA and Domain “inner west” search results. Yet somehow Homebush and Strathfield do? Bonkers (Go Knicks) 

South Marrickville

People know Marrickville for Marrickville Road, Victoria Road, The warehouse restaurants and bars…

South Marrickville is different. It’s a little more “Earlwood”.

North Marrickville carries the suburbs brand. The industrial corridor, near Enmore. The housing prices are steaper in the North end. That is why I see the south as underrated. 

You find family homes down here at numbers that look out of place compared to what’s transacting a kilometre north.

Forest Lodge

Sounds like a box of cereal from the 1980s. 

But genuinely, perhaps the most underrated suburb in Sydney. 

Go buy in Glebe — Taxed.

Go buy in Annandale- Taxed. 

Go buy in Forest Lodge?- Slightly less taxed but so cool. 

It’s basically a tightly held patch off Glebe that is a Terrace city. 

Some of the most beautiful homes and people live here. 

A sense of community exists in this inner city bubble that gives the suburb brownie points like no other. 

People make an area desireable. Dont believe me? Go live in Alice Springs. 

Petersham

I live in Petersham, so take the endorsement with whatever weight you think that deserves. 

Lil Portugal will always be underrated until it becomes more valuable than Stanmore, Marrickville, Newtown. 

New Canterbury Road is one of the most genuinely valid eating strips in Sydney. Food media doesnt come here because they don’t get paid to. 

For a while it was considerably cheaper than its neighbouring suburbs. Thats now starting to change, especially across the train tracks on the Petersham Park side of Petersham. Subtle flex, your boy sold 11 Croydon Street for $4.5m. Who’s spending $4.5m to live somewhere thats not amazing. 

Petersham has immaculate housing stock - Federation and Victorian galore. Some other suburbs could never. 

Leichhardt

Leichhardt is now the long-game suburb.

If you’re young and have time, do it. 

It went through its peak moment in the 90s and early 00s, got a reputation as the Italian suburb, and ever since the fall of Norton Street/Italian Forum, has been a ghost town. 

I was at a barber shop in Petersham (a stone throw away) and one of the barbers hadn’t even heard of the Forum. 

While train transport is a current driver of buyers away from it, 

You can’t help but ponder, the future of Leichhardt — surely its upward.

The housing stock is solid. Small blocks but genuine character.

Norton Street still has the bones of what it was, even if the restaurant scene has thinned out over the years.

What makes Leichhardt interesting is Rozelle and Balmain adjacency, throw in Leichhardt prices and now we’re talking. 

The Norton Street strip will come back. Parramatta Road will improve. 

The suburb’s fundamentals have always been there.

The buyers who bought in the last two years and held patience will be the ones who look smart in five.

What connects these suburbs

Nothing really, they’re all unique in their own ways. 

What I see is underrated are the ones people drive past. 

For more Inner West content follow my socials or call me anytime. 

Ramon Raneal is a Property Partner at The Agency Inner West. He specialises in Petersham, Marrickville, Dulwich Hill, Lewisham, Hurlstone Park, and surrounding suburbs. ramonraneal.com.au | @ramonraneal.agent