From my experience, just about any classical guitar can sound good, as opposed to a steel string. I remember I bought this used Fender classical for $100. Took it home and played it. To me, it sounded like a kid's toy. So I took it back.
Then I went looking for another one, playing all kinds in the $100-$300 range, then the $500-$1000+ range and they all still sounded like kids toys.
Then I realized it was how I was playing them. When I figured out how to play them correctly, I regretted returning that $100 used Fender.
I don't hear too much of a difference now between the cheap Yamaha's and the more expensive ($500-$700) from my experience.
Yamaha's are readily available and built very well. In fact, when auditioning a few just a few days ago, I would have personally gotten the Yamaha above all the others there, price considered. But that's just my opinion.
The $1,000+ ones did indeed sound better but not enough to warrant the price. For your price range I'd recommend a Yamaha.