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South Korean former world No.1 Jiyai Shin has won a second Australian Open crown to deny South African Ashleigh Buhai an unprecedented title hat-trick.

Golf marvel Jiyai Shin has kept Ashleigh Buhai at bay to claim her second Australia Open title in a dramatic finish at Kingston Heath.

Shin had been on track for a record-setting victory before holding on for a two-shot win with a 17-under-par 274 total as hopes of a first home triumph in a decade quickly evaporated on Sunday.

The South Korean former world No.1 had led by as many as seven shots in the final round but had to drain a seven-foot putt at the last to close with a round of 70 and avoid an even more anxious finale.

Bidding to become the first player in the tournament's 50-year history to complete a winning hat-trick, Buhai had a 12-foot birdie attempt on the 72nd hole to apply pressure on Shin.

But the South African shaded the cup as the 36-year-old Shin added a 65th professional title to her incredible CV.

Shin's trophy cabinet includes two British Open crowns and now two Australian Open titles, having first etched her name on the Patricia Bridges Bowl in 2013.

Her 17-year-old amateur compatriot Hyojin Yang finished third at seven under, 10 shots behind the winner and eight adrift of the runner-up, after positing a final-round 72.

Hannah Green and fellow LPGA Tour star Grace Kim were the leading Australians in a tie for fourth at six under.

It was a forgettable day for Green, who started just one shot behind Shin and hopeful of capping a stellar season with a fourth title of the year.

Instead, Green finished with an eight-over 79.