$840,000

This 1-bedroom apartment at 709/35 Shelley Street, Sydney, priced at $840,000, appears to be well-positioned in the competitive Sydney market. Comparing it to the provided data, similar 1-bedroom, 1-bathroom apartments in Sydney have recently sold for $585,000, $775,000, and $575,000. While the listed price of $840,000 is higher than these specific comparables, it's important to note that the provided comparables lack rental data, making a direct 'undervalued' assessment challenging without knowing their specific condition, location within the building, or views. However, given the premium nature of Shelley Street and potential building amenities, the price is likely reflective of its specific attributes, suggesting a moderate undervaluation potential. My Undervalued Score of 75 reflects a belief that while not a 'steal', it offers fair value for its location and type, especially considering the broader Sydney market's consistent growth.

For the estimated weekly rental income, I've considered the average estimated rent of $2200/week across all comparables, but critically, this average is heavily skewed by 2-4 bedroom luxury apartments. Focusing on 1-bedroom apartments in premium Sydney locations, a realistic estimate would be between $650-$750 per week. Given the prime Shelley Street address, potential building amenities (which are common for apartments in this precinct), and current strong rental demand in Sydney, an estimated weekly rent of $700 is reasonable. This estimate has a moderate confidence level, as specific rental comparables for 1-bedroom units were not provided. This translates to an estimated gross annual rental yield of 4.32% ($700 x 52 / $840,000 x 100). This yield is strong for the Sydney CBD apartment market, which often sees yields closer to 3-4% for premium properties, hence the high Rental Yield Score of 70.

Key investment strengths include the prime Sydney CBD location, which ensures consistent demand from renters and buyers, and the solid rental yield potential. The property type (apartment) in this location is generally liquid. Potential risks include the lack of parking, which can deter some buyers/renters, and the potential for high strata fees typical of CBD buildings. The flip potential is moderate; while Sydney properties generally appreciate, the margin for significant renovation profit on a 1-bedroom apartment at this price point might be limited unless the property is in particularly poor condition. My recommendation is to investigate strata reports for fees and capital works, and to confirm specific building amenities and recent 1-bedroom rental data for the exact building or immediate vicinity to solidify the rental estimate. This property presents a solid buy-and-hold investment opportunity with good income potential in a blue-chip location.