A waterfront mansion in Australia's most expensive suburb, Point Piper, has been sold at a $7m discount -- further evidence that the financial crisis is hurting the prestige property market.

Property developer and sharemarket investor John Dalley, who has strong exposure to James Packer and Babcock and Brown-related stocks, recently received about $18 million for his property on Wunulla Road.

The Sydney home was placed on the market for $25 million more than six months ago, but sources say Mr Dalley wanted to "downsize to another home in the eastern suburbs".

The Australian