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Tributes flow for victim of Sydney stabbing rampage - 'A true delight'

The Sydney woman allegedly killed by a man accused of going on a stabbing rampage in the CBD has been described as a "true delight".

Mert Ney, 20, is accused of killing 24-year-old Michaela Dunn in a Clarence Street apartment before allegedly stabbing 41-year old Linda Bo at the Hotel CBD, walking down York Street with a knife and being restrained by bystanders.

He remains under police guard in hospital and is yet to be charged.

One of Ms Dunn's friends, Joan A Westenberg, described the 24-year-old on Twitter as a "true delight" and "incredible".

Her mother told Nine News she was a "beautiful girl from a beautiful family" and "very much loved".

Police believe Ney attended the Clarence Street unit for "the purposes of prostitution". Ms Dunn was later found at the apartment with a laceration to her neck and was pronounced dead at the scene.

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The family of the accused has apologised and called his actions despicable. Source: 1 NEWS

Investigators are trawling through Ney's electronic devices, social media accounts and family home as they try to determine why the 20-year-old sought to kill and injure innocent people.

Police say Ney was carrying a USB stick with information about recent mass casualties in New Zealand and the United States, and could be heard on video footage shouting "Allahu akbar".

NSW Police Commissioner Mick Fuller said the rampage had not yet been classed as a terrorist incident and the "lone actor" had no known links to terrorist organisations.

Mr Fuller also said Ney had recently self-admitted to a mental health facility and had been listed as missing by family.

Ney's sister told reporters yesterday that Ney had been domestically violent in the lead-up to the incident and suffered several mental illnesses.

The 20-year-old was captured on CCTV arriving at the Clarence Street apartment building at 1.30pm (3.30pm NZT) on Tuesday and leaving about 20 minutes later, before allegedly stabbing Ms Bo. She remains in hospital in a stable condition.

He then walked down York Street, armed with a large kitchen knife, before bystanders restrained him with chairs and a milk crate.

Ney is expected to be charged with murder, as well as serious assault.

Michaela Dunn. Source: 1 NEWS