Treasurer Joe Hockey sprinkles hot water on snow in Point Piper divestiture decision
The federal government's foreign investment crackdown was premised on the doubtful outcome of making houses more affordable for young Australian first home buyers.
Treasurer Joe Hockey's accompanying dramatic announcement regarding a $39 million Point Piper divestiture order after it's illegal purchase won't however achieve that outcome.
But it will make trophy homes on pricey harbourside peninsulas much more affordable. Even Hockey's own suburb, Hunters Hill will feel the ripples after Villa del Mare's buyer was caught illegally buying it through a company, registered in Australia, which had warranted it did not need FIRB approval. We'll keep the $2.67 million purchasing stamp duty!
The many high ranking Chinese buyers that seek to cherry pick our best trophy homes were already ill at ease about the exposure their private residential acquisitions were attracting in the free press, but now they will undoubtedly back off in anxiety to suburbs or countries friendlier to their discrete purchasing desire.
Certainly nothing on the street that has attracted bus tours from sightseeing Chinese tourists when they visit Sydney. No more just cuddly koalas and the Opera House – they started touring along Wolseley Road, Point Piper for a glimpse of the now demolished $32.4 million property owned by a son of a former vice-president of China. Set high on a hill, above a towering sandstone wall and overlooking Sydney Harbour with picture postcard-perfect views of the bridge, Craig-y-Mor, the Point Piper non-waterfront residence, remains owned by Zeng Wei and his wife, Jiang Mei.
Xu Jiayin, one of China’s richest men, was first named by Property Observer as the identity who likely bought the palatial-style 16,230-square-foot Villa del Mare home last November, with the poorly resourced FIRB taking another four months chasing the same paper trail.
The first to likely feel the consequences of Joe Hockey's whistle will be the near Point Piper neighbour, Mandalay which sought to piggyback Villa del Mare's success, in the emerging sales momentum of Point Piper.
The SMH spruiking of the opulent Mediterranean mansion of a former tobacco executive, William Webb, advised Mandalay was set to challenge the newly set record held for a non-waterfront property in the affluent harbourside suburb, through the Black Diamondz agency.
There is a Chinese saying, 山雨欲来风满楼, coming events cast their shadows before them, but listing agent Monika Tu wouldn't have seen this left field interference from the federal government.
And the Villa del Mare order to sell within 90 days - agents yet to emerge - is hardly likely to yield the best selling conditions between now and the chilly onset of winter for Villa del Mare which took three years, on and off, to find a buyer last time.
Possibly the villa will even be jinxed, ruled out by feng shui experts.
There might even be the emergence of a new proverb, Point Piper property is like a ladder, with some climbing up it, others down.