Australia Garden Village is a real estate development project located in Jinkeng Village, Xinlong Town, Huangpu District, Guangzhou, Guangdong Province, China. The project was developed by the Guangzhou Aomei Real Estate Development Company. Originally envisioned as a high-end residential complex combining living, leisure, entertainment, and vacation amenities, the development was planned to cover a construction area of . Construction began in 1992, but the project was halted in 2001 due to a financial collapse within the Aomei Company, at which time only 225 of the 292 villas (or residential tower blocks) had been fully topped out and structurally completed.
In an effort to raise capital following the suspension of the project, the Aomei Company transferred, mortgaged, or sold portions of the land, housing units, and other assets of the development to Guangzhou Fangxing Real Estate Construction Co., Ltd. This led to the subdivision of the site and triggered land ownership disputes that are still ongoing. Fangxing subsequently sold part of the land to Guangzhou Yuhu Real Estate Development Co., Ltd., a subsidiary of Hutchison Whampoa, while Aomei introduced Guangdong Hongyu Group into negotiations, further entangling the ownership structure.
In 2011 and 2016, rumors circulated about plans to redevelop Australia Garden Village, but the land ownership conflicts prevented any re-commencement of development. In 2021, several departments of the Guangzhou Municipal Government issued a joint directive terminating the land transfer agreement between Aomei Company and Jinkeng Forestry Park. The termination was based on Aomei's unauthorized transfer of land to Fangxing, resulting in substantial losses of state-owned assets. This effectively marked the repossession of the Australia Garden Village site by the government. In November 2023, a representative of the homeowners reported that the district government would take the lead in redeveloping the site, with the intention of providing housing for buyers who had originally purchased unfinished units.
Since the collapse of Aomei Company's capital chain in 1998, Australia Garden Village has remained unfinished for over 25 years. The development is widely covered by media outlets, including Guangzhou Daily, Yangcheng Evening News, Chongqing Daily, and Ming Pao, as "the largest unfinished building project in Guangzhou". A total of 2,386 units were sold within the development. Of these, 865 contracts were eventually terminated, and another 139 units were suspended. The prolonged abandonment of the site has had a significant and lasting impact on the homeowners, many of whom have been engaged in rights defense efforts for more than two decades. The sustained efforts of Australia Garden Village's homeowners have drawn widespread attention and have been officially listed as a key destabilizing factor in major housing-related risk cases across Guangdong Province, as well as in municipal and district-level reports. According to data from the Homeowners' Committee, fewer than 300 owners remained actively involved in rights defense activities during the Mid-Autumn Festival in 2020.
History
Planning and construction
In 1991, Chaoshan businessman Hu Yaozhi returned to China to invest and established a textile factory in Guangzhou through a Sino-foreign joint venture. Hu provided the capital, while the Guangzhou Economic and Technical Cooperation Office handled technical support and recruitment. Wu Kaiming, a fellow Chaoshan native and an employee of the Cooperation Office, later joined Hu's company as its designated Chinese representative.
In 1992, based on Wu Kaiming's recommendation, Hu Yaozhi purchased 10 plots of land totaling 986 mu (approximately 657,000 square meters) for the future development of Australia Garden Village. The land was acquired at a price of over 60,000 yuan per mu. Hu went on to invest around 200 million yuan to establish the Guangzhou Australia and America Real Estate Development Company. He appointed Wu Kaiming as deputy general manager and officially launched the Australia Garden Village project. During this period, Hu also secured a number of loans or issued loan guarantees through various banks to support the development.
Australia Garden Village was originally conceived as a high-end residential complex that integrated living, leisure, and entertainment. The planned construction area covered approximately 202,990 square feet and included amenities such as supermarkets, hotels, hunting grounds, entertainment centers, camping and training facilities, water resorts, and elite schools. The development comprised 292 buildings and thousands of commercial housing units, divided into zones A, B, C, D, EA, and a separate villa section.
In 1996, the Australian-American development company launched a major real estate advertising campaign in Guangzhou, featuring celebrity endorsements to promote the "Australia Garden Village" project. At the time, units were priced at around 3,000 yuan per square meter, marketed with the concept of a natural, pollution-free vacation lifestyle. To accelerate sales, the company offered a special payment plan: interest-free installments over 20 years, with a down payment of 38,000 yuan and monthly payments of just 488 yuan. By November 1997, approximately 1,800 units had been sold; by 1998, that number had grown to over 2,000. In total, more than 3,000 homes were eventually sold. Of these, 2,483 buyers had their purchase information verified, registered, and filed with government regulatory authorities. However, around 1,000 owners had yet to complete registration. According to another set of official data, a total of 2,386 units were sold, with 865 contracts later terminated and 139 suspended.
Broken capital chain
In 1998, Hu Yaozhi alleged that the financial director of the Australia-America Company, Mr. He, had embezzled a significant portion of the pre-sale funds collected from homeowners. He reportedly used numerous legal documents in his possession to take out large loans in the company's name, ultimately misappropriating around 120 million yuan before fleeing with the funds. This created a severe financial shortfall for the company. In the second half of 1998, the Australia-America Company sent a letter to homeowners, encouraging them to apply for mortgage loans through banks and transfer the loan proceeds to the company. The company promised to cover the interest on these loans. Despite this effort, its financial difficulties only deepened. By late 1998, construction on parts of the Australia Garden Village project had come to a halt. Services such as the shuttle bus to and from Guangzhou East Station were canceled, and several facilities—including a floating restaurant, a Western-style restaurant, and a hotel—were shut down. By 1999, construction work had nearly come to a complete standstill. In September 2000, the company ceased paying interest on the homeowners' loans.
Some homeowners offered differing perspectives on the causes of the company's financial collapse. One owner, Lao Yue, recalled that even before the Australia-America Company claimed the He brothers had absconded with funds, construction in Area C of the Australia Garden Village project had already been suspended for six months. During that time, real estate agents aggressively promoted units in Areas EA and A, which had yet to be built. According to Lao Yue, construction in Area C resumed only after all the units had been sold. He also estimated that approximately 1,800 homeowners had purchased their units using mortgages, with interest payments alone accounting for 60% to 80% of the total loan amounts. As a result, the company was required to make substantial monthly payments to the bank. Another owner, Liu Yongguang, speculated that the Australia-America Company had used funds from later sales to finance the construction of earlier phases of the project—a practice that may have ultimately triggered the company's cash flow crisis.
Around the year 2000, the Australia-America Company handed over several homes to owners despite the fact that they were not actually ready for occupancy. These units had failed fire safety inspections, lacked proper infrastructure, and were ineligible for property certificates. Many also suffered from serious quality issues, including water leakage, uneven walls, and faulty doors and windows. As a result, only about 30 homeowners chose to renovate and move in. That same year, due to severe financial difficulties, all construction at the Australia Garden Village project came to a complete halt. At the time, the development consisted of approximately 292 buildings—225 of which had been topped out and structurally completed, while the remaining 67 were still under construction or left unfinished. Many homeowners, unable to take possession of their properties and still burdened with mortgage loans, filed lawsuits against the Australia-America Company in an effort to protect their rights. Company founder Hu Yaozhi was repeatedly listed as a dishonest debtor by the authorities.
Disposal of land to raise new capital
In the years that followed, the Australia-America Company sought partnerships with several major developers in hopes of reviving the Australia Garden Village project. In 2003, Hu Yaozhi nearly reached an agreement with a real estate developer, but the deal ultimately fell through. The reasons for the failed contract were disputed by Hu and his associate Wu Kaiming. According to Hu, Wu believed the developer was not a suitable partner. However, Wu claimed the deal collapsed because Hu was unhappy with a last-minute reduction in the proposed purchase price.
In 2004, in an effort to resolve its financial difficulties, the Australia-America Company (Aomei Company) transferred four land use certificates—Zengguoyong (1995) No. 018, No. 022, No. 024, and No. 026—covering a total of 340 mu of land, to Fangxing Company. According to Hu Yaozhi, the transfer was initiated at the request of Wu Kaiming, who aimed to facilitate a potential partnership with Cheung Kong Industries. To demonstrate goodwill, Wu reportedly lent Hu a sum of money to cover utility bills and employee wages. However, the two sides offered differing accounts regarding the land transfer price. Wu Kaiming stated that the land was sold at 38,000 and 50,000 yuan per mu, while Hu Yaozhi claimed the agreed price was 300,000 yuan per mu. Public records show that three contracts signed on 23 December 2004, listed prices of 38,000 yuan and 50,000 yuan per mu, while a contract signed on 30 December 2004, listed the price as 300,000 yuan per mu, with a total transaction amount of 102 million yuan. This figure matches the amount reported in the 2007 local tax return filed by the Australia-America Company.
In 2005, Fangxing Company proposed to Aomei that it be granted the rights to operate three land parcels, including "Land No. 017." In February 2006, Cheung Kong Holdings and Hutchison Whampoa—both owned by Li Ka-shing—jointly announced a partnership with Fangxing to form a joint venture company for the development of four residential plots in Guangzhou. That same year, Guangzhou Fuding Industrial Company was established as a representative entity for the cooperation between Aomei and Fangxing. The company had a registered capital of 3 million yuan. Wu Kaiming's spouse, Zhong Kezhi, and Hu Yaozhi's associate, Jiang Datong, each held 50% of the shares. Additionally, Hu Yaozhi and Jiang Datong signed an agreement stating that Hu was the company's actual investor.