Where will the Smart Money Move to in Sydney in 2026?

Buyer’s Domain Insider Series Part 2

This article is the second in our four‑part Insider Series, addressing the shifting aspirations and strategies of different buyers in Sydney’s evolving property landscape. This second article focuses on where downsizers will be moving to in 2026.

The SMART Downsizer Move: Where Sydney Empty Nesters Will Buy in 2026

Downsizers in 2026 will be capitalising on unprecedented equity gains in detached houses to secure premium, convenient Inner West lifestyles, with buyer preferences converging on walkability, water access, proximity to medical facilities, and effortless transport links. The suburbs of Drummoyne, Glebe and Leichhardt are emerging as consistent choices, offering house and apartment stock that trades floor area for superior location, amenity, and long‑run liquidity in a market constrained by slow construction pipelines.

The new downsizer brief

Across Sydney, the price gap between houses and units is at or near record highs, enabling empty nesters to sell the family home and purchase high‑quality strata or low‑maintenance dwellings while releasing capital and eliminating debt burdens. This equity release is frequently used to bolster retirement, assist adult children, and upgrade to newer, lift‑serviced apartments or renovated single level houses with minimal upkeep in lifestyle‑rich precincts.

Downsizers also place emphasis on medical access, flat walks, lifts, secure parking, and storage, with demand heightened in suburbs close to CBD health clusters and waterfront recreation, which enhances both day‑to‑day liveability and future resale appeal. The persistence of sluggish dwelling construction adds scarcity to quality stock in blue‑chip Inner West locations, supporting values and time‑on‑market resilience.

Why the Inner West suits downsizers

The Inner West offers mature high‑street amenities, and character housing adapted to modern convenience, creating an ideal blend for owners seeking to simplify without sacrificing lifestyle. Local trends show increasing auction clearance rates in 2025 and enduring demand for well‑located, renovated dwellings, particularly near future and existing rapid‑transit links and waterfronts.

Moreover, council‑led and state‑led planning around Sydney Metro West precincts is catalysing renewal and mixed‑use amenity in surrounding suburbs, even where stations are not directly present, reinforcing walkable services, public realm upgrades, and long‑term appeal for low‑maintenance living.

Drummoyne — bayside lifestyle with blue‑chip fundamentals

Drummoyne combines waterfront amenity with swift city access via Victoria Road bus corridors and nearby ferry services, a package that resonates with downsizers seeking an attractive lifestyle offering green outlooks, walking paths, and village retail moments from home. Market analysis highlights robust long‑term price performance for houses and solid growth for quality units, underscoring the suburb’s defensive characteristics for purchasers focused on capital preservation and ease of living.

The combination of outlook, infrastructure proximity, and established services positions Drummoyne as a preferred choice for those prioritising a scenic, low‑maintenance lifestyle.

Glebe — heritage charm, harbourside convenience

Glebe remains a classic downsizer suburb: heritage terraces, boutique apartment conversions, village retail, Light Rail connectivity, and proximity to the CBD and major medical hubs around Camperdown and Broadway. The pedestrian‑friendly foreshore walks and bayside reserves provide daily recreation, while small lot terraces and quality strata blocks allow a practical transition from larger homes to manageable dwellings with character.

Market commentary in 2025 places Inner West house and unit hotspots across established, amenity‑rich locations with strong buyer depth, a profile into which Glebe’s tightly held streets and village‑scale shopping align neatly for long‑term liquidity. For purchasers prioritising a lock‑up‑and‑leave lifestyle near cultural and educational institutions, Glebe offers enduring appeal and a proven demand base.

Leichhardt — village living with everyday ease

Leichhardt’s walkable streets, anchored by Norton Street and Marion Street, continue to attract downsizers who value familiar services, medical facilities, and flat walking access to cafés, grocers, and community venues. Terrace and semi‑detached stock suit those who wish to retain a house format with smaller gardens, while select modern apartment complexes offer lifts, secure parking, and low‑maintenance convenience close to the Light Rail and bus corridors.

Market commentary points to firm buyer demand, aided by constrained new supply and a flight to quality locations, conditions that typically favour renovated, well‑positioned dwellings that meet accessibility and maintenance briefs for downsizers. As an Inner West cultural mainstay, Leichhardt also offers a strong social fabric that supports ageing in place within a familiar community context. For those thinking ahead, there are even a number of existing aged care facilities in or near Leichhardt.

Metro West and the amenity uplift

Sydney Metro West continues to reshape buyer psychology in the Inner West, by compressing access times between the CBD and Parramatta and catalysing precinct masterplans that elevate local amenities, retail, and pedestrian environments. Construction updates across station sites such as Five Dock indicate steady progress on enabling works in 2025, reinforcing investor and owner‑occupier conviction around the accessibility dividend that will accrue on completion, due in 2032.

For downsizers, the practical benefit will be improved connectivity for medical appointments, cultural events, and social routines, without reliance on car travel. This will increase independence and enhances long‑term liveability. Anticipated rezoning and design‑led upgrades around station catchments also tend to improve streetscapes and service density, which are an important factor in the downsizer decision framework.

What downsizers are buying

The most competitive properties meet a specific checklist: single‑level or lift‑serviced dwellings, minimal stairs, secure parking, storage, quality construction, and proximity to shops, transport, and healthcare. Boutique blocks with strong strata records, well‑designed two‑bedroom and three‑bedroom apartments, and renovated single level houses on quiet streets draw consistent depth of enquiry and resilient resale outcomes.

Given the record house‑to‑unit value gap, strategically trading down to premium, low‑maintenance stock in blue‑chip Inner West locations allows owners to release capital while upgrading lifestyle—an equation that will attract growing numbers of early‑movers in 2026. With construction pipelines constrained, near‑new and fully refurbished dwellings command scarcity premiums and strong competition at auction.

How buyers’ agents add value for downsizers

Professional representation can streamline complex transitions: assessing strata complexes, forecasting outgoings, vetting building condition, and identifying micro‑locations with superior walkability and noise shielding. Skilled negotiation and access to off‑market inventory are especially valuable where tightly held stock and strong local demand limit public opportunities in suburbs such as Glebe, Leichhardt, and Drummoyne.

At Buyer’s Domain, we pair evidence‑based assessments with on‑the‑ground insights, ensuring the property not only meets the lifestyle brief but also preserves capital through quality, location, and building integrity—critical factors for those moving from a high‑equity family home. Experience across Sydney’s Inner West allows us to anticipate precinct upgrades and transport improvements that can materially enhance both daily life and future resale prospects.

Timing the 2026 downsizer move

For downsizers, 2026 will allow conversion of house equity into liquid, lifestyle‑led positions ahead of further amenity uplift from Metro West and associated precinct planning, with the added benefit of securing everyday convenience for the decade ahead. Acting proactively enables buyers to select on quality rather than compromise under time pressure, which typically results in better long‑term satisfaction and capital outcomes.

To discuss a tailored downsizing strategy in Glebe, Leichhardt, or Drummoyne—and to access pre‑market and off‑market opportunities—speak with our buyers’ agents at Buyer’s Domain in Leichhardt.