In Circular Quay, the corks are popping.

Property developers have just sold 106 apartments in less than three hours and they're celebrating, Sydney style.

One-bedroom pads at the Loftus Lane project started from $1.5 million. The penthouse went for $17 million.

Justin Brown, the chairman of real estate services company CBRE Residential, said the majority of people snapping up the homes were Australian.

"We had less than 5 per cent foreign investors," he said.

"Developments like this are so sought-after by the local market. Here we're really after an empty-nester market — people who are selling their homes in the suburbs and looking for a place to downsize."

The average house price in Sydney is over $1 million, but these terraces in Paddington are worth vastly more than that. ( ABC News: Riley Stuart )

Foreign investment in property is a hot-button issue in a city where the average house price is an eye-watering $1 million.

But soon, the Harbour City's real estate hunger games will be played out under different conditions.

Announced on Thursday, the Berejiklian Government's suite of new housing affordability measures loomed large over Sydney's real estate deals at the weekend.

The policies, which include abolishing stamp duty for existing and new homes up to $650,000, are designed to make it easier for first home buyers to step onto the property ladder.

They also target overseas buyers, increasing the foreign investor surcharge on stamp duty from 4 per cent to 8 per cent.

NSW Premier Gladys Berejiklian said her Government's policies would not stop the property market driving the economy.

She said the 4 per cent surcharge on stamp duty for foreign investors that was introduced last year had not slowed sales.

"What that tells us is that people who want to invest are doing it anyway," Ms Berejiklian said.

"But what our changes provide is an extra leg up to people trying to get in for the first time so they'll be in a stronger position to compete against local investors and other investors."