$900,000-$950,000

This 2-bedroom, 2-bathroom apartment at 201/646 Harris Street, Ultimo, priced at $900,000, appears to be well-positioned in the current market. Compared to the provided 2-bed, 2-bath comparables, which range from $1,150,000 to $1,600,000, this property's asking price is significantly lower. While the comparables often include parking (which this property lacks), the price difference suggests a potential undervaluation, especially considering Ultimo's strong demand for well-located apartments. The average price of all comparables is skewed by several very low-priced 1-bed units, so focusing on similar 2-bed, 2-bath properties is crucial for valuation. My confidence in the undervaluation score is moderate to high, assuming the property's condition is reasonable and not requiring substantial immediate repairs. For rental income, the comparable 2-bed, 2-bath units show estimated rents of $850/week to $950/week. Given this property lacks parking, which can be a significant factor in Ultimo, I estimate a realistic weekly rent of $820. This is slightly below the lowest comparable with parking but reflects the competitive rental market. Based on this estimate and the $900,000 asking price, the gross annual rental yield would be approximately 4.73%, which is attractive for a Sydney inner-city apartment. This yield is higher than the 3.1%-3.4% seen in the provided comparables, largely due to the lower purchase price. The flip potential is moderate to high; Ultimo is a desirable suburb with consistent demand from students and professionals. If the property is slightly dated, a cosmetic renovation could add significant value given the lower entry price point. Key investment strengths include its prime inner-city location, strong rental demand, and a potentially undervalued purchase price offering a solid rental yield. A potential risk is the lack of parking, which could limit buyer appeal upon resale or slightly reduce rental desirability. My recommendation is to investigate the property's condition thoroughly. If it's in good structural shape, this property represents a strong investment opportunity for both rental income and potential capital growth, with a clear path for value addition through minor renovations.