Melbourne ultra prestige activity at eight year lows while Sydney prestige median off by 8%

The median house price for the top 10% of Sydney's suburbs by value has declined by about 8% since it peaked in June 2010, according to Dr Andrew Wilson, the senior economist at Australian Property Monitors.

But confidence was slowly returning to this market, he said.

In the first six months of this year, 118 Sydney properties have been recorded as having been sold in Sydney for $5 million or above, with one sale at $20 million.

"With spring yet to fully unfold and the sharemarket seemingly on the rise, it's a good bet that 2012 will end as a recovery year for top-end property," Dr Wilson said.

In 2010, 348 Sydney properties were sold for $5 million or above, with six at $20 million or above.

Last year, 274 Sydney properties sold for $5 million or more, with just one going for more than $20 million, at $21.5 million.

Dr Wilson said Sydney's prestige market was showing signs of a revival, with recent healthy auction clearance rates emerging in the eastern suburbs, lower north shore and northern beaches.

Melbourne's "ultra-prestige" market was suffering a hangover from a "bubble" during the last boom in 2010, according to Dr Wilson.

"People who buy at this level tend to be risk-inclined and more adventurous in prosperous times and that inflates the value of top-end assets," he told Fairfax Media in the weekend press.

"But it becomes speculative and that can be unsustainable."

Only 14 homes have sold for prices above $5 million this year, down from a record 85 homes in 2010, according to APM.

The number of transactions is now at its lowest point since 2004.