We stayed in Rose Bay in December and it was just perfect for us. 50 m from a gorgeous beach and above all shops and restaurants you could want. A ferry link to Circular Quay or Watsons Bay and on a great bus route into the city. The apartment was very homely with high ceilings adding a feeling of spaciousness. If you were put off by the approach/entrance (via a laneway/passageway) or the outside aspect you would miss a real jewel of a stay! The sofa bed allowed us have our daughter to stay for a few nights passing through Sydney but it is really an apartment most suited for a couple.