Businessman loses $305,000 deposit on Sydney trophy home

An artist's impression of the four-level mansion. Photo / Raine & Horne

It was supposed to secure his dream home in Sydney's eastern suburbs, but A$277,000 ($305,000) has evaporated into thin air.

Property developer Peter Zhu has forfeited his down payment on a luxury property in Bellevue Hill, after failing to stump up the second part of his deposit, according to reports.

The six-figure sum is more than three times the average Australian salary of $79,721, but it is just 5 per cent of the sale price of the Bundurra Rd property, which Zhu agreed to buy for $5.5 million, Fairfax Media reports.

The 1000sq m property has council approval for a four-level mansion with a glass-fronted swimming pool and a tennis court.

It could have made the ultimate trophy home for the businessman, who runs property company LB Group, which is developing a two-tower complex at Gosford's Mariner's Plaza.

According to the listing with Raine & Horne Double Bay, the home is in an "exclusive precinct close to shops and excellent schools", with approved architectural plans "designed to maximise and harbour views" and boast a sunny north aspect.

The plans provide for "ultra spacious family living" with five bedrooms, six bathrooms, spacious living and dining areas, a kitchen, rumpus, games room, gym and a lift.

"Hidden from the street behind a high fence and remote-controlled garage, the property also offers potential to renovate the existing two-level circa 1920s home with a flexible floorplan including three bedrooms, two bathrooms, two living areas, dining room, a study and a big eat-in kitchen," the listing said.

The property at Bundurra Rd, Bellevue Hill has approval for a major renovation. Photo / Raine & Horne

Zhu was last year named as the sponsor of a controversial programme of concerts to be held in Sydney and Melbourne celebrating the life of Mao Zedong, the revolutionary dictator and founding father of Chinese communism.

The events, set to mark the 40th anniversary of Mao's death, were cancelled amid security concerns after community members protested.

The developer made headlines in 1999 when he took the NSW Government to the High Court over the cancellation of his contract to sell Olympic Club memberships in China in the lead-up to the Sydney Olympics. In 2004, Zhu was awarded $4.23 million for wrongful termination of his contract.

He is one of several buyers to walk away from high-end property deals in recent years. The most high-profile example is that of Cate Blanchett's Hunters Hill mansion, which sold to Richard Mingfeng Gu in 2015 - only to go back on the market and sell for a more conservative $18m two years later.