Paddington is Sydney's most handsome inner-city suburb, a hillside neighbourhood of Victorian terrace houses with cast-iron lacework balconies running east from the CBD toward Bondi. The terraces were built for workers in the 1880s and 1890s, fell into disrepair through the mid-20th century, and have since been restored to the point where they are among the most expensive real estate in the country. Oxford Street runs through Paddington's heart and holds a concentration of fashion boutiques, art galleries, specialty food shops and cafes.
The Paddington Markets, held on Saturday mornings in the grounds of the Paddington Uniting Church, have been running since 1973 and remain one of the best markets in Sydney for local designers, artisan food and vintage finds. The surrounding streets of Glenmore Road and Woollahra are worth wandering for the architecture alone — the terrace streetscapes are remarkably intact. The area is also home to several good commercial galleries and the Chauvel Cinema, one of Sydney's most characterful independent cinemas.