The two-bedroom home at 9 Cabarita, Collingwood Ave, is for sale for the first time since 1969 and is located in one of the most sought-after locations in Sydney's inner west.

The property has been owned by the Waller family since it was purchased 53 years ago for $17,000.

With its prime location near French Bay, the property is expected to be sold at auction for over $8 million.

Ben Horwood, Managing Director and founder of Horwood Nolan, said the current owners had decided it was time to move on.

Mr Horwood said the waterfront location was one of the best in the entire inner west of Sydney, surpassing Strathfield in terms of popularity.

"Concord and Cabarita on the waterfront are much more desirable places to live," he said.

"It's close to the elite public schools in the Inner West. It's a rare opportunity."

Horwood Nolan sold a larger waterfront home in Cabarita for $14.6 million, $6-7 million more than the suburban record, he said.

"Properties like this are just so tight," he said.

Mr Horwood said the agency was using a July 2022 sale of a similar property for $8.2 million with two doors as a comparable price guide for 9 Collingwood Ave.

"It was an older duplex, so we thought this property might be priced the same," he said.

The listing describes the property as a "perfect blank canvas" of 850 square metres on a "superb plot that showcases a sunny eastern exposure and direct water frontage to French Bay".

"You could live here, but it could most likely be knocked down and rebuilt as a dream home or a luxury duplex," says Mr Horwood.

The property boasts panoramic views of the city skyline, concrete boat docks and a sandy beach.

"Located in one of Cabarita's most prestigious neighbourhoods, with elite public schools, cafes, restaurants and direct access to the CBD on its doorstep, this property promises the ultimate inner west lifestyle," the listing reads.

The property will be auctioned on 20 May at 9am.