Top end properties are selling like hotcakes, according to various real estate agents.
Property sales eclipsing $4 million have been recorded in the Eastern Suburbs, Northern Beaches and North Shore.
McGrath agent Ben Collier of Edgecliff said that the momentum was being "driven by bankers with bonuses in their pockets".
"Buyers' agents are telling us that the bankers came back into the market in the third quarter of '09 whereas in the first quarter of last year it was professionals like doctors, lawyers and business owners," he said.
Mr Collier was the selling agent for the unrenovated "Jenner" at 2 Macleay St, Potts Point, which sold for $15 million to car dealer Terry Mullens and his wife Wendy last November.
Mr Collier told The Daily Telegraph that purchasers are more discerning nowadays.
"Whereas once they would have paid $6 million and had a bigger mortgage, today they want that same value for $4.5 million," he added.