Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Remember Me

Lost your password?

Register Now

Loading...
  • Capital Markets
  • Events
    • Mingtiandi 2025 Event Calendar
    • Mingtiandi APAC Residential Forum 2025
    • Mingtiandi Singapore Forum 2025
    • Mingtiandi APAC Logistics Forum 2025
    • Mingtiandi APAC Data Centre Forum 2025
    • Mingtiandi Tokyo Forum 2025
    • More Events
  • MTD TV
    • Residential
    • Logistics
    • Data Centre
    • Office
    • Singapore
    • Tokyo
    • Hong Kong
    • All Videos
    • Post-Event Stories
  • People
    • Industry Moves
    • MTD TV Speakers
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Evergrande Boss’ Sydney Mansion Caught in Aussie Crackdown

2015/03/04 by Michael Cole Leave a Comment

Joe Hockey FIRB

Joe Hockey looks ready to check Xu Jiayin into the boards.

The billionaire owner of China’s Evergrande real estate bought one of the poshest homes in Sydney last year for A$39 million ($30.5 million). But now Xu Jiayin, who also owns Guangzhou Evergrande football club, has 90 days to sell off his limestone palace and the 1500 square metres of land that it sits on, or risk prosecution.

Evergrande bought the mansion in Sydney’s exclusive Point Piper area through a subsidiary in October last year, but apparently forgot to notify Australia’s Foreign Investment Review Board (FIRB) that the purchase was being made by what was ultimately a non-Australian company.

Billionaire Runs into Anti-Foreign Backlash

Now with Australia’s Treasurer, Joe Hockey, announcing last week that the country would begin taxing home purchases by non-residents, and reemphasise existing rules on declaring investments by overseas companies and individuals, Xu is being forced into a fire sale of his new Sydney home.

While non-residents are free to purchase newly built properties, existing structures can only be acquired by residents or citizens of Australia. And Xu’s mansion, complete with its retractable pool table, is definitely second-hand.

Although Australia has long required that overseas buyers of Australian assets register such acquisitions, the rule has long been overlooked. According to a report in the Australian Financial Review, the forced divestiture by Evergrande is the first such case since 2007.

“The rules are straightforward,” FIRB chairman Brian Wilson, was quoted as saying in the Review. “It’s an existing property you have to be either a resident, or a citizen or a temporary resident. You can’t be a foreign investor.”

Wilson apparently indicated that Evergrande had been given the opportunity to prove compliance with the restrictions on foreign investment before the forced divestiture was announced by Hockey to Australia’s parliament on Tuesday.

Surge of Chinese Homebuyers Fuelling Friction in Australia

The moves by Australia’s government to show that it is cracking down on real estate speculation by foreign buyers comes amidst an influx of wealthy Chinese into the market.

According to figures from FIRB and investment bank CLSA, China is now the leading source of foreign investment in Australian real estate, and the increasing enthusiasm among Chinese buyers is blamed for driving double-digit growth in home prices in the country’s largest markets.

Last year more than 20,000 Australians signed a petition demanding tighter rules on foreign ownership of Australian property.

According to data from real estate intelligence provider CoreLogic RPData, housing prices across Australia’s major cities rose 1.3 percent in January compared to December, and were up an average of eight percent over the same period a year earlier. Melbourne prices rose fastest at 2.7 percent month on month, with Sydney just behind with a 1.4 percent gain over December.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: crebrief, Evergrande Real Estate, Foreign Investment Review Board, highlight, Joe Hockey, Sydney, Xu Jiayin

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

  • This field is for validation purposes and should be left unchanged.
320x320 CorporateV2

MTD TV

china logistics thumb
GLP, CPE, Savills Upbeat on Solving China Shed Supply Overhang: MTD TV
Ellen Ng Warburg Pincus
C-REITs a ‘Game-Changer’ for China Real Estate Says Warburg Pincus Executive

More MTD TV Videos>>

People in the News

EQT_David Kim
Asia Real Estate People in the News 2025-06-21
singh-anshuman
Asia Real Estate People in the News 2025-06-16
Raymond Lee Paul Hastings
Law Partner Picks Up Hong Kong Home of Former Birmingham City Boss for $37M
Teo Chee Hean Temasek
Asia Real Estate People in the News 2025-06-09

More Industry Professionals>>

Latest Stories

Chan Hung Ming Grand Ming
Bain Capital in Exclusive Talks to Acquire Hong Kong Data Centre Projects for Up to $274M
Stuart Dawes Gateway
Aussie Shed Surge Continues with $87M Gateway Portfolio Disposal
EQT_David Kim
Asia Real Estate People in the News 2025-06-21

Sponsored Features

How to Create a Win-Win for Investors and Occupiers
Lingeage Logistics Cold Storage Complex
Mount Maunganui Cold Storage Facility for Sale
7 in 10 Senior Directors Confident in Data Centres, but Talent Shortage Will Widen

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Mingtiandi 2025 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Memberships
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2025 China Advertising Media Ltd (Samoa). All rights reserved.

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse