It worked really well for me. I had no issues with Slussen construction noise. Perhaps a bit of sound from the doorways and garbage man in the morning but nothing major. The apartment was well appointed and although as people had commented, quite small, it has lots of cupboard space and is very well appointed so never felt at all cramped to me.
The location is great and I made ample use of the Blå Dörren around the corner and, ok, the Hernö Gin Bar. But really not far to go for places either on Södermalm or over the water in town.
A really good stay.