Five miles from the skyscrapers of Sydney's business district, Bondi has long been the city's most famous beach. Its mile-long swath of golden sand and explosive surf have made it the most popular Sydney suburb in the last decade, and the hotels and upscale restaurants that have popped up all over town have cemented its place as a jet-set celebrity hangout.

But Bondi's eclectic street style still has a bit of what locals call a grotty feel—a touch of grunge and edge that keeps the neighborhood interesting and true to its working-class roots. Vintage shops and small street-fashion boutiques still stand in defiance of the newly redeveloped $550 million Westfield Mall, a goliath of a shopping center (one of the largest in the Southern Hemisphere) that has risen in nearby Bondi Junction.

Parallel to Bondi's beachfront is Campbell Parade, an Art Deco promenade lined with bars and cafes. Merchandise of all kinds—jewelry, plants, sarongs, hand-woven hammocks—can be found here at the Sunday market at the Bondi Beach Public School, Campbell Parade, (61-2) 9315-8988.

But the Bondi Market is also the proving ground for up-and-coming Sydney fashion designers and their work; come here if you want to get a jump on the next season's emerging trends. It's the ideal location to pick up hand-tooled leather belts and screen-printed blouses that you won't see anywhere else—at least until the designer opens a shop of her own.

The people-watching is excellent, showcasing local surfers chatting and playing with their dogs and celebrity fashionistas browsing for bargains. (Residents of Bondi will soon count Lachlan Murdoch, son of Rupert, as one of their own, as he is set to move there from New York as part of a break with his father's company.)

A couple of blocks from Campbell Parade is Gould Street, a funky, bohemian shopping strip stocked with stylish finds. Tuchuzy, 90 Gould Street, (61-2) 9365-5371, a clothing boutique owned by Daria Sakic, was a retail pioneer when it opened its doors eight years ago. But it stays cutting-edge by carrying small local labels such as Museum and Sass & Bide. The women's section of the store (Tuchuzy also sells men's and baby items) is stocked with a changing selection—recent pieces included a range of denim, miniskirts, dresses and camisoles in candy pink, apricot and jade green. Patrons like its well-chosen, varied merchandise, which runs from under $10 to about $1,000.

Nearby, there is the like-minded From St. Xavier, 75a Gould Street, (61-2) 9365-4644, another smart urban boutique that carries a range of clothing, shoes and accessories in a concrete-jungle-meets-underground-workshop interior, softened by the creative local artwork on the walls.

Farther up from the beach is Glenayr Avenue, which has a few fashion mainstays of its own, including Puf 'N Stuff, Shop 3, at No. 96, a cramped, trendy grandma's attic with a well-curated selection of retro and vintage clothing, and possibly the best secondhand shopping spot in Sydney.