$2,700,000 - $2,850,000

This 3-bedroom, 2-bathroom apartment at 1905/161 Clarence Street, Sydney, is positioned in the premium end of the Sydney CBD market. Its asking price range of $2,700,000 - $2,850,000 places it above the average comparable property price but within the expected range for a 3-bedroom unit in this desirable location. Comparing to similar 3-bedroom apartments in the provided data, we see 'apartment 10' at $6,900,000 with 2 car spaces and 'apartment 11' at $2,580,000 with 2 car spaces. Given the subject property has 1 car space and is priced closer to 'apartment 11', it appears to be reasonably priced for its size and location, though not significantly undervalued. The 'Undervalued Score' of 65 reflects this fair market positioning, suggesting it's not a bargain but also not overpriced for the current market. The Sydney CBD market for luxury apartments remains strong, supporting this price point.

For the estimated weekly rental income, we look at the 3-bedroom comparables. 'Apartment 10' (3bed, 2bath, 2car) is estimated at $2200/wk, and 'Apartment 11' (3bed, 2bath, 2car) is estimated at $1850/wk. Considering the subject property has 1 car space compared to the 2 car spaces of the comparables, a slightly lower estimate is appropriate. Therefore, an estimated weekly rent of $1750 is a realistic and conservative figure. This estimate is based on the strong demand for premium CBD living and the specific features of the property, including its bedroom count and parking. My confidence level in this rental estimate is moderate to high, given the direct comparables provided.

Based on a purchase price of $2,700,000 and an estimated weekly rent of $1750, the estimated gross annual rental yield is approximately 3.36% ($1750 * 52 / $2,700,000 * 100). This yield is typical for high-value CBD apartments, which often prioritize capital growth over high rental returns. The 'Rental Yield Score' of 55 reflects this moderate yield.

Key investment strengths include the prime Sydney CBD location, which offers consistent demand from both owner-occupiers and high-income tenants, strong potential for long-term capital appreciation, and the scarcity of 3-bedroom apartments in such central locations. The 'Flip Potential Score' of 70 is based on the property type (apartment in a premium building), the strong market, and the potential for cosmetic upgrades to enhance value, though the current listing doesn't indicate its condition. Potential risks include the high entry price point, which limits the buyer pool, and the ongoing impact of interest rates on borrowing capacity. Additionally, strata levies for premium CBD apartments can be substantial and impact net yield. An actionable recommendation would be to conduct thorough due diligence on strata reports, including levies and any upcoming major works, and to assess the property's current condition to determine the scope for value-add renovations.