Where to Stay: Best Areas of Sydney

Clock Icon 12 minutes read
Update Icon May 22, 2023

Sydney, one of Australia’s most populous and beloved cities, is a fantastic vacation destination for a huge variety of travelers. Families, couples, backpackers, and solo holidaymakers visit Sydney from all over the world to take in the city’s iconic landmarks, vibrant creative neighborhoods, and unique history.

As the capital of New South Wales, Sydney is a huge, sprawling city that is home to more than five million Australians. It is comprised of more than 658 suburbs, with the renowned Sydney Harbour at its heart. It’s here where you’ll find the likes of Sydney Opera House and Harbour Bridge and where you can enjoy incredible views of the city’s metropolitan skyline.

The sheer size of Sydney means that there’s a wide range of accommodation options to choose from to suit all budgets and preferences. If you’re visiting for the first time, deciding which part of the city to stay in can be tough. Let’s take a look at some of the most popular areas of Sydney to help you choose the perfect base for your vacation.

Central Business District 

Central Business District 
Photo Credit: Olga Kashubin
  • Best for: First-Time Visitors
  • Top attractions: Art Gallery of New South Wales, Sydney Town Hall, Hyde Park, St. Mary’s Cathedral

If you want to be surrounded by Sydney’s biggest and best attractions, the city center is where you should stay. The Central Business District, often known as Sydney CBD, is home to a large population of young professionals who live and work in the many high-rise apartment and office buildings in the area. 

An extensive range of shops, bars, restaurants, cafes, and tourist attractions are on offer here.

George Street is deemed the core of CBD, but the neighborhood technically covers a wide area of inner-city Sydney. The Rocks, Circular Quay, and Darling Harbour are all within the CBD’s official boundary, but these popular areas each have their own unique charm.

The entirety of Sydney’s Central Business District is easily walkable and it has excellent public transport access for traveling further afield. There are plenty of accommodation options to choose from here. You’ll find a great range of luxury, mid-range, and budget hotels as well as both pod and dormitory-style hostels for backpackers.

The Rocks and Circular Quay 

The Rocks and Circular Quay 
Photo Credit: Taras Vyshnya
  • Best for: Busy Sightseers
  • Top attractions: Museum of Contemporary Art Australia, The Rocks Interactive Discovery Museum, The Argyle Gallery, Sydney Harbour Bridge, Sydney Opera House, Royal Botanic Garden

The Rocks, on the southern side of Sydney Harbour, is where the first settlers landed from Europe in 1788 to start a colony that steadily grew into the Sydney we know and love today. There are plenty of impressive heritage buildings to admire and several museums in which to learn about the city’s history.

This neighborhood is home to two of Sydney’s most iconic landmarks. First, there’s the Sydney Opera House which sits right on the edge of the harbor and dominates the landscape. The second is Sydney Harbour Bridge which connects North and South Sydney.

Some of Sydney’s most expensive accommodation is along the harborside here, so if you want to wake up to fantastic views from a luxurious base, check out hotels in The Rocks. 

Backpackers will love the Sydney Harbour YHA (Youth Hostel Association). The area makes a good base for exploring the rest of the city because it’s home to Circular Quay, a train station and transport hub where trains, buses, and ferries provide easy access to every corner of the city.

Darling Harbour

Darling Harbour
Photo Credit: Taras Vyshnya
  • Best for: Families
  • Top attractions: Madame Tussauds, Australian National Maritime Museum, SEA LIFE Sydney Aquarium, Sydney Wildlife Zoo

Just a short walk from Sydney City Centre is Darling Harbour, a beautiful waterside area on the western edge of the Central Business District. There are several boutique hotels here, as well as dependable international chain hotels such as Novotel Sydney and the Adina Apartment Hotel.

Darling Harbour is purpose-built for tourists. It first opened in 1988 to celebrate the bicentennial year of Australia’s colonization. The area is a brilliant place for families to stay in because there are plenty of attractions for kids to enjoy and an excellent range of shops, restaurants, and cafes. The historic Pyrmont Bridge connects the east and west sides of the harbor, and since it’s pedestrianized, it makes for a very relaxing stroll.

At night, family-friendly Darling Harbour has a thriving atmosphere as locals head out to enjoy the area’s fantastic bars and restaurants. Look out for the weekly firework display that takes place every Saturday night. You’ll get great views from Cockle Bay Wharf but be prepared for it to get crowded.

Surry Hills and Newtown

Surry Hills and Newtown
Photo Credit: Glen Berlin
  • Best for: Good Food and Nightlife
  • Top attractions: Camperdown Memorial Rest Park, Enmore Theatre, Prince Alfred Park, Brett Whiteley Studio

If you’re looking to stay a little outside of the hustle and bustle of the city center, consider the suburbs of Surry Hills and Newtown. Accommodation is cheaper here, but these neighborhoods have their own unique charms that make them a good choice for young couples and backpackers.

Newtown is a paradise for foodies, with a fantastic range of restaurants, bistros, cafes, and takeout spots. You’ll find a huge variety of cuisines here, including Japanese, Thai, Cantonese, Vietnamese, Italian, French, and Greek.

Surry Hills is even livelier. Although it was once a working-class neighborhood, its beautiful Victorian houses are now highly sought after. The area is incredibly trendy, with plenty of fashion boutiques and hipster coffee shops to enjoy during the day and thriving pubs, bars, and nightclubs to party in at night.

Kings Cross

Kings Cross
Photo Credit: f o g a a s
  • Best for: Backpackers and Party Animals
  • Top attractions: Fitzroy Gardens, El Alamein Fountain, Lawrence Hargrave Reserve

Kings Cross, once known as Woolloomooloo Hill, has a complex history. In the early 1800s, it was developed by wealthy businessmen and quickly became home to Sydney’s elite. In the late 1800s and early 1900s, its demographic began to change as the nearby naval base brought an increase in dive bars, strip clubs, and brothels.

For a long time, Sydney’s Kings Cross was known as the city’s red-light district but since the late 1990s, its reputation has further evolved. Young professionals have bought up and revamped the cheap property here, and now the area is proudly home to many cool coffee shops, bars, and restaurants.

There’s a good range of accommodation for backpackers here, and affordable food and drink prices appeal to young travelers on a budget. Although there remain many seedy clubs and bars in Kings Cross, there’s no storage of fun nightlife to enjoy if you want to explore Sydney’s grittier side.

Paddington 

Paddington 
Photo Credit: Olga Kashubin
  • Best for: Professionals
  • Top attractions: Paddington Gates, Paddington Markets

Paddington is an inner-city residential area of Sydney that’s popular with white-collar workers. It takes just five minutes to reach the Central Business District by train from here. This is a great location for business travelers, and most of the hotels here are booked up by professionals.

Oxford Street cuts through the heart of Paddo, as it is fondly known by locals. This elegant street is packed with shops and restaurants, but be sure to wander around the maze of side streets in the area to discover charming boutiques selling antiques, bric-a-brac, books, clothing, and art.

Although few tourists choose to stay in Paddington, the area is definitely worth visiting if you love Sydney’s 19th-century architecture. The historic buildings give the area a regal atmosphere. Spend a laid-back day here on a Saturday so that you can visit the market at Paddington Uniting Church where local artists, bakers, chefs, and crafters sell their wares.

Chinatown

Chinatown
Photo Credit: ArliftAtoz2205
  • Best for: Foodies
  • Top attractions: Market City, Tumbalong Park, Chinese Garden of Friendship

Nestled between Darling Harbour and Central Station is Sydney’s Chinatown, which happens to be the biggest Chinatown in the whole of Australia. It’s just a 15-minute walk here from Central Station, and you’ll know you’ve found it when you spot the area’s ornate Chinese gates, lanterns, and banners.

Chinatown is a good option for those looking for budget accommodation, but even if you don’t stay here, be sure to visit. You’re spoiled for choice when it comes to restaurants, and it’s not just Chinese food on offer — there’s excellent quality Japanese and Korean food to be enjoyed too.

Dixon Street is Chinatown’s main street. It’s pedestrianized, so it is a pleasure to stroll along it and take in the thriving atmosphere. You can pick up plenty of great souvenirs at the nearby Paddy’s Market in Market City, which is also home to City Amusement, if you’re looking for some fun arcade games.

Darlinghurst and Potts Point

Darlinghurst and Potts Point
Photo Credit: commons.wikimedia.org
  • Best for: Arts and Culture
  • Top attractions: Victoria Barracks, Darlinghurst Jail, The Sydney Jewish Museum, Naval Heritage Museum, Artspace, Potts Point Galleries

The cosmopolitan area of Darlinghurst has undergone extensive renewal since the 1980s and is now a popular residential area. It’s close to the elegant area of Paddington, but it has a trendier, more relaxed atmosphere.

Potts Point is a little more upmarket, and it’s rich in historic sights. Woolloomooloo Wharf, once home to a wool-processing shed, has a fantastic range of trendy bars, shops, and restaurants.

There are several mid-range hotels in Darlinghurst and Potts Point, as well as dorm-style hostels for backpackers. There’s a good range of shops, bars, cafes, and eateries here with prices that run a little cheaper than in the city center.

Milsons Point

Milsons Point
Photo Credit: Olga Kashubin
  • Best for: Couples
  • Top attractions: Luna Park, Pylon Lookout, Wendy’s Secret Garden

Milsons Point is situated on Sydney’s lower North Shore, just across the Sydney Harbour Bridge. You can get fantastic views of the Central Business District skyline from here. Those who want to avoid the hustle and bustle of the city center tend to love staying in Milsons Point. There are fantastic transport links to the rest of the city, and the area has plenty of attractions of its own on offer.

Luna Park is Milson Point’s best-known attraction. It can be recognized by the huge, smiling moon face that sits at its entrance. Families with kids love this amusement park which has been open since 1935. Luna Park is also a great vantage point to see incredible views of Sydney Harbour and its bridge.

The peaceful, suburban atmosphere of Milsons Point makes it a great spot for couples. You can easily while away your evenings wandering around the historic streets and enjoying the area’s fantastic range of restaurants.

Bondi Beach 

Bondi Beach 
Photo Credit: commons.wikimedia.org
  • Best for: Surfing and Sun Lounging 
  • Top attractions: Bondi Pavilion, Bondi Markets

Bondi is, without a doubt, the most famous beach in Sydney, and it’s the best place to stay for those who plan to spend most of their trip out on the waves surfing. There are plenty of accommodation options here, including hotels to suit all budgets, condos, apartments, and hostels. It also has the benefit of being very close to Sydney Airport.

Surfing culture is the biggest draw of Bondi Beach, and both experienced surfers and newbies fit in here. There are plenty of opportunities to hire boards, take lessons and connect with fellow surfers.

Bondi Beach also makes a great base for walking and hiking. A popular trail is the Coogee Coast Walk which winds through nature reserves and passes natural saltwater pools. Coogee Beach itself is 1.8 miles from Bondi, and it’s a much more sheltered stretch of sand for those who want to spend a lazy day soaking up the sun.

Manly 

Manly 
Photo Credit: commons.wikimedia.org
  • Best for: Peace and Relaxation
  • Top attractions: Manly Corso, Queenscliff Tunnel (aka Manly Wormhole)

Manly Beach is 10.5 miles north of central Sydney, but it’s a beautiful resort for those who want a peaceful base. This area is naturally incredibly beautiful, and the beaches here offer plenty of opportunities for surfing, kayaking, scuba diving, sailing, and snorkeling.

The best way to travel between Manly and the city center is via ferry from Circular Quay. The journey takes around 30 minutes and offers spectacular city views along the way. If you’re in a hurry, a fast-ferry service takes just 15 minutes. Although you’re bound to want to explore central Sydney, rest assured there are plenty of high-quality restaurants and bars in Manly itself for when you don’t want to venture too far.

Manly might be quieter than central Sydney, but it’s incredibly popular, so prepare to book accommodation well in advance. There’s a range of hotels, apartments, and villas to suit all budgets.

Best Hotels in Syndey

There’s no shortage of hotels, guesthouses, and hostels scattered across Sydney, particularly in the city center. Here are a few of the most sought-after Sydney hotels for those looking for upmarket accommodation.

Luxury Hotels with Harbour Views

  • Park Hyatt Sydney is a 5-star hotel situated at Sydney Harbour’s edge with incredible views of the Opera House.
  • The Langham Sydney is a spa hotel situated in the Rocks district with bright, spacious, and elegant rooms.
  • The Four Seasons, situated in the Central Business District, offers deluxe, modern rooms with fantastic views of the city’s skyline.

Mid-Range Hotels for Affordable Luxury

  • The Little National Hotel, situated near Wynyard Station, offers affordable, comfortable, and compact rooms with convenient access to public transport.
  • Ovolo The Woolstore 1888, situated in Darling Harbour, is a boutique hotel set in a heritage-listed historic building that was once a wool store and factory.

Plan Your Trip to Spectacular Sydney

There’s plenty of variety in Sydney in terms of tourist attractions and neighborhoods, which means it’s easy to find accommodation in an area that suits your unique preferences. Now you’re clued up on the best areas of Sydney; you can get started planning your visit to Australia’s oldest city.

Featured Image Credit: Ira Sokolovskaya