$1,600,000-$1,700,000

This 2-bedroom, 2-bathroom apartment at A706/517 Harris Street, Ultimo, is listed at $1,600,000, placing it at the higher end of the 2-bedroom market in Ultimo. When assessing undervaluation, we compare it to similar properties. Comparable property 3, a 2-bed, 2-bath, 1-car apartment, sold for $1,300,000. While this property's specific features (e.g., views, floor level, building amenities) are unknown, the listed price of $1.6M suggests it's not significantly undervalued compared to recent sales, hence a moderate Undervalued Score of 40. There's a possibility it's priced at or slightly above market for a standard 2-bed offering. My confidence in this assessment is moderate due to limited detail on the subject property's specific attributes beyond bed/bath/car. The market position appears to be in line with premium 2-bedroom offerings in the area.

For the estimated weekly rental income, comparable property 3, a similar 2-bed, 2-bath, 1-car unit, had an estimated rent of $850/week. Given the subject property's higher price point, suggesting potentially better finishes, views, or building amenities, I estimate a weekly rent of $950. This takes into account the strong rental demand in Ultimo, particularly for well-located, modern 2-bedroom apartments with parking, appealing to professionals and students. My confidence in this rental estimate is high, as it directly extrapolates from a very similar comparable property, adjusted for potential quality differences. This yields an estimated gross annual rental yield of 3.08% ($950 * 52 / $1,600,000 * 100).

The Gross Rental Yield Score of 65 reflects a respectable yield for a premium Sydney CBD fringe location, though not exceptional compared to regional markets. The Flip Potential Score of 70 is based on the property type (apartment) and location. Ultimo is a high-demand area with consistent capital growth, driven by its proximity to universities, the CBD, and amenities. While apartments generally have less renovation upside than houses, a strategic cosmetic renovation could enhance value and rental appeal, especially if the current condition is dated. The consistent demand in Ultimo supports potential for resale profit in the medium to long term.

Key investment strengths include the prime location, strong rental demand, and potential for capital appreciation in a blue-chip Sydney suburb. Potential risks include the relatively high entry price for a 2-bedroom apartment, which impacts yield, and the potential for increased supply in the broader Sydney apartment market. My recommendation is to proceed with due diligence, focusing on comparing the property's specific internal condition, views, and building amenities against the $1.3M comparable sale to justify the $300k price difference. This will clarify if the asking price aligns with the property's true value proposition and potential for future appreciation.