Golfer wins $16k watch with incredible hole-in-one

New Zealand golfer Brad Shilton earned himself an expensive new fashion accessory after a stunning hole-in-one at the Australian Open on Thursday.

Shilton's incredible moment came in the opening round of the tournament on the par-three 11th hole at The Australian Golf Club in Sydney.

The Kiwi, lining up his tee shot at the 'Tag Heuer hole,' couldn't have struck it any sweeter as the ball took three hops on the green before rolling into the cup.

If that wasn't good enough for Shilton, the New Zealander also pocketed a $16-thousand watch for his troubles, on behalf of tournament sponsor Tag Heuer.

Sydney young gun Cameron Davis upstaged Jason Day to seize the clubhouse lead with a sizzling first round on Thursday.

Davis fired an eight-under-par 63 in perfect morning conditions to capture a three-stroke lead over Day, who slipped up with a horror double-bogey on his second last hole.

"Everything went to plan," Davis said.

"I got off to a great start. I was hitting my spots and was able to keep it together on the back nine."

The 22-year-old's only blemish came on the par-4 ninth.

He collected nine birdies, including six on the front nine, to take early command of the championship.

After starting on the 10th hole, Day was cruising along at six-under par before finding the trees on the 440-metre par-4 eighth.

After hitting out of the trees, Day missed his approach and was unable to get up-and-down for a bogey.

Much to the delight of the big gallery following the former world No.1, Day retrieved a shot with a bounce-back birdie on the last to share second spot in the clubhouse.

Jason Day. Pic: Getty

Day was tipping a birdie blitz at the 102nd Open if conditions weren't too tough and it was looking that way.

World No.2 Jordan Spieth, the defending champion, teed off just after midday alongside fellow US PGA Tour stars Cameron Smith and 2015 Australian Open winner Matt Jones.

Watch the Australian Open live and free on Channel 7 and the 7Live app from 12pm AEDT

With AAP