Hot air balloons are often seen over both Melbourne and Canberra. Sydney... not so much. I'm not sure whether that's because Sydney doesn't have the right wind conditions for them, or the fact that unlike Melbourne and Canberra the main flight paths into or out of Sydney airport pass straight over the city and your gentle hot air powered ride might become a bit less tranquil were you to be taken out by a passing 767.
In any case, we see here one such balloon drifting just beyond the Princess Theatre in Spring Street. The warmth of the early morning light is well apparent in this shot.