The woman murdered in a knife attack in Sydney has been named as Michaela Dunn.

The 24-year-old was allegedly killed at an apartment on Clarence Street in city’s CBD on Tuesday by Mert Ney, a 20-year-old who police say had a history of mental health issues.

Ms Dunn was a former Rosebank College and Notre Dame university student from Lidcombe in Sydney’s inner west. On Wednesday her family issued a statement through the New South Wales police requesting privacy.

“While her family appreciate the support offered by the community, they have requested their privacy at this difficult time,” the statement read.

Ms Dunn’s mother told Nine News her daughter was a “beautiful, loving woman who had studied at university and travelled widely”.

Mr Ney, from Marayong, near Blacktown in western Sydney, was arrested on Tuesday after he allegedly stabbed a 41-year-old woman at a hotel in the Sydney CBD and was later restrained by members of the public - lauded as “heroes” by police - who used cafe chairs and a milk crate to pin him down.

About an hour after the his arrest, Ms Dunn’s body was found inside an apartment in Clarence Street, in central Sydney. Police said on Wednesday she sustained a laceration to her neck from a knife attack and was pronounced deceased at the scene.

Police said their initial inquiries indicated Mr Ney had attended the Clarence Street unit for an appointment about 1.30pm and was captured on CCTV leaving the building about 1.50pm.

Ms Dunn’s neighbour, Ketki Gupta, was home at the time but said on Wednesday that the first she heard about the attack was on the news.

“I didn’t hear anything,” she said. “I was at home watching the news about the attack and then saw it was our building.”

Her husband, Anshul Gupta, said he had seen Ms Dunn in passing.

“We didn’t see her often, just heard her coming home sometimes that sort of thing,” he said. –Guardian