$850,000

This 1-bedroom, 1-bathroom apartment at 1302/161 Clarence Street, Sydney, is listed at $850,000. When assessing its market position relative to comparable properties, we focus on 1-bed, 1-bath, 0-car apartments in the Sydney CBD. The comparable data for similar properties shows prices ranging from $575,000 to $1,125,000, with an average of approximately $778,000 and a median of $775,000. Given this, the asking price of $850,000 places it slightly above the average and median for similar units, suggesting it is not significantly undervalued, but also not overpriced for a prime Sydney CBD location. The 'Undervalued Score' of 70 reflects that while it's above the median, the Sydney market can justify higher prices for well-located units, and there might be room for negotiation or it could be seen as fair value depending on internal condition and building amenities. My confidence in this assessment is moderate, as specific building details are unknown. For the estimated weekly rental income, I've considered the comparable 1-bed, 1-bath, 0-car apartments, which show rents ranging from $680/week to $780/week, with an average of $710/week. Given the property's prime Clarence Street address, which is highly desirable for CBD living, an estimated weekly rent of $720 is reasonable. This aligns closely with the average of comparable units and positions it well in the competitive Sydney rental market. My confidence in this rental estimate is high, as it is directly supported by recent comparable listings. Based on a purchase price of $850,000 and an estimated weekly rent of $720, the estimated gross annual rental yield is 4.4% ($720 * 52 / $850,000 * 100). This yield is respectable for the Sydney CBD market, which often sees lower yields due to high property values, earning a 'Rental Yield Score' of 65. Key investment strengths include the highly sought-after Sydney CBD location, strong rental demand, and potential for capital growth typical of prime metropolitan areas. Potential risks include the relatively high entry price for a 1-bedroom apartment, potentially higher strata fees common in CBD buildings, and market fluctuations. The 'Flip Potential Score' of 60 is moderate; while the location is excellent, the profit margin for flipping may be constrained by the current asking price unless significant value can be added through a high-quality renovation, which is not indicated. An actionable recommendation would be to investigate strata reports, building condition, and recent sales within the specific building to confirm the value proposition and potential for rental growth. This property appears to be a solid, albeit not exceptionally high-yielding, investment in a blue-chip location, suitable for long-term hold for capital appreciation and consistent rental income.