Buyers guide $2,200,000

This Redfern apartment at 504/6 Baptist Street, priced at $2,200,000, sits in a highly sought-after inner-city suburb known for its vibrant lifestyle and strong rental demand. The provided comparable property, a 1-bedroom apartment for $850,000, is significantly smaller and lower priced, making direct price comparison challenging. Given the property's 2-bedroom, 2-bathroom, 1-parking configuration, it offers a premium living experience compared to the single comparable. Based on current Redfern rental market data for similar 2-bedroom, 2-bathroom apartments, which typically range from $850 to $1100 per week depending on condition, views, and amenities, an estimated weekly rental income of $950 is realistic. This estimate considers the property's likely modern build (given the address type) and the strong demand for quality rentals in Redfern. This would result in an estimated gross annual rental yield of approximately 2.25% ($950 * 52 / $2,200,000 * 100). This yield is typical for premium inner-city Sydney apartments at this price point, which often prioritize capital growth over high immediate yield. The undervalued score is moderate (40) because while Redfern is a growth area, the asking price is at the higher end for a 2-bedroom apartment, suggesting it's likely priced at or slightly above market for its specific features rather than significantly undervalued, especially given the limited comparable data provided. The flip potential (55) is average; while Redfern has strong capital growth, a premium apartment like this may have less scope for significant value-add renovations unless it's in a dated condition not specified. Key investment strengths include the desirable Redfern location, strong rental demand, and potential for long-term capital appreciation. A potential risk is the relatively lower rental yield compared to other property types or regional areas, and the high entry price point. The limited comparable data makes precise valuation difficult, and thus the confidence level for the undervalued score is moderate. Recommendation: This property is suited for an investor prioritizing capital growth and a prime inner-city location over immediate high rental yield. Further due diligence on recent comparable sales of 2-bed, 2-bath apartments in the immediate vicinity is crucial to confirm market value.