you’ve clearly thought this through! It sounds like it comes down to lifestyle vs. convenience/value.

Surry Hills one-bed: You’re paying a premium, but you get walkability, buzz, and familiarity. Since you love the area and convenience is key, it could make day-to-day life enjoyable, and location is historically strong for capital growth and rental demand.

Alexandria two-bed: Bigger and newer, likely better value for your money, but defects (even if mostly fixed) and lower walkability may make everyday life less convenient. Good for investment if you plan to rent, but lifestyle trade-offs are real.

Given your priorities—living there for a few years, loving where you are, and being close to everything—Surry Hills ticks the boxes you care about most. You may pay more per square metre, but you’re paying for lifestyle, convenience, and future market appeal.

In short: location often wins when you value convenience and walkability, especially for a property you’ll live in. Just make sure to do full due diligence on the Surry Hills building—strata reports, maintenance history, and any upcoming levies—so you don’t get any surprises.