Few things hit a community as hard as seeing a local property developer collapse under millions of dollars in debt. When that developer leaves behind a trail of unpaid creditors and liquidated companies, the ripple effects touch contractors, suppliers, and whole neighbourhoods.
Debt triggered by: Carters building supplies over $225,000 ·
Total personal liabilities: Millions of dollars ·
Bankruptcy date: July 2025 ·
Primary cause cited: Collapsing Auckland property market
Quick snapshot
- Jack Li declared bankrupt in July 2025 (NZ Herald (leading NZ news outlet))
- Carters building supplies triggered bankruptcy with $225,000+ debt (NZ Herald (leading NZ news outlet))
- Financial statement shows liabilities of NZ$2.357 million and assets of NZ$22,000 (HouGarden (NZ-Chinese business news))
- Exact total debt across all creditors remains unspecified
- Li’s current employment or real estate licence status
- Full list of properties or projects involved in the bankruptcy
- Whether other creditors beyond Carters actively pursuing claims
- March 2025: Li signed affidavit acknowledging project failure (HouGarden (NZ-Chinese business news))
- July 2025: Carters building supplies obtains bankruptcy order (HouGarden (NZ-Chinese business news))
- August 2025: NZ Herald publishes details of the case (HouGarden (NZ-Chinese business news))
- Companies reportedly being liquidated alongside personal bankruptcy (HouGarden (NZ-Chinese business news))
- Allegations of cash transfers between failing companies under investigation (NZ Property Finance Economy (industry Facebook group))
The data reveals a developer with 107 times more debt than assets — a ratio that signals total insolvency.
| Name | Jack Li (also reported as Zhiwei Li) |
| Occupation | Property developer, real estate agent (Barfoot & Thompson) |
| Key creditor | Carters building supplies |
| Trigger debt amount | Over $225,000 (NZ$) |
| Total personal liabilities | Millions of dollars (NZ$2.357 million per financial statement) |
| Assets | NZ$22,000 (per financial statement) |
| Bankruptcy date | July 2025 |
| Cited cause | Collapsing Auckland property market |
| Sources | NZ Herald, HouGarden, NZ Property Finance Economy |
The implication: Li’s asset-to-debt ratio leaves nothing for unsecured creditors — they are unlikely to recover even cents on the dollar.
Are Auckland house prices dropping?
Recent data on Auckland house prices
- Auckland’s median house price has fallen in 2025, extending a trend that began in late 2021 (NZ Herald (New Zealand’s largest daily newspaper)).
- The downturn has wiped billions from property values across the region.
For developers like Jack Li who took on debt during the boom years, falling prices meant they could not sell completed projects at profitable prices. The gap between construction costs and sale prices became unsustainable.
Impact of falling prices on property developers
- Developers with high leverage face margin calls and refinancing difficulties when valuations drop.
- Several Auckland development projects have been placed on hold or abandoned as feasibility crumbles (HouGarden (NZ-Chinese business news)).
The pattern: when a market turns, the most exposed operators — those who borrowed most aggressively — are the first to fail. Li’s case fits this pattern exactly. His affidavit reportedly acknowledged project failure, and a financial statement showed NZ$2.357 million in liabilities against just NZ$22,000 in assets.
Developers caught in the downturn face a stark equation: assets worth pennies on the dollar while debts remain at full value. For Jack Li, that gap was more than NZ$2.3 million — and growing.
What is the nicest suburb in Auckland?
Suburbs favored by property developers
- Established suburbs like Ponsonby, Grey Lynn, and Remuera command premium prices but also higher land acquisition costs (HouGarden (NZ-Chinese business news)).
- Developing suburbs such as Hobsonville Point and Stonefields have attracted significant development investment in recent years.
How suburb choices affect investment risk
- Premium suburbs offer higher margins but require deeper capital reserves.
- Developing suburbs present volume opportunities but higher exposure to market timing.
The implication: Li’s project locations — still publicly unconfirmed — would have influenced his debt exposure. Developers working in suburbs with slower sales cycles are more vulnerable when the market cools.
In a falling market, a developer’s suburb choice can be the difference between riding out the downturn and facing bankruptcy. The wrong location plus wrong timing equals financial collapse.
What is the hardest month to sell a house?
Seasonal trends in Auckland real estate
- Auckland’s property market typically sees lowest sales volumes between May and August — the winter months (HouGarden (NZ-Chinese business news)).
- Winter 2025, when Li’s bankruptcy was filed, represents the peak illiquid season.
Liquidity challenges for developers in slow months
- Low sales volume means fewer buyers and longer time on market.
- Developers carrying holding costs — interest, rates, insurance — face cash flow crises during slow periods.
For Li, the timing of the Carters bankruptcy petition in July 2025 landed squarely in the toughest selling season. That timing likely compounded his financial distress, leaving him unable to liquidate properties quickly enough to meet creditor demands.
Even in a normal market, winter sales take longer. In a cooling market with high developer leverage, the winter months become a death trap for cash flow. Li’s creditors did not wait for spring.
Who is Jack Li and why is he bankrupt?
Jack Li’s career as an Auckland property developer
- Jack Li operated as both a property developer and a real estate agent at Barfoot & Thompson, one of Auckland’s largest real estate agencies (NZ Herald (New Zealand’s largest daily newspaper)).
- His development activities involved multiple companies, some of which are now being liquidated (HouGarden (NZ-Chinese business news)).
- Reports also refer to him as “Zhiwei Li,” indicating a possible name variant that should be checked against official court documents.
The specific debts and creditor actions
- Carters building supplies, a major NZ building materials supplier, obtained a bankruptcy order against Li in July 2025 over a debt exceeding NZ$225,000.
- A financial statement referenced in reporting shows personal liabilities of NZ$2.357 million against assets of just NZ$22,000 (HouGarden (NZ-Chinese business news)).
- Allegations have surfaced — though from lower-confidence sources — that Li transferred cash between failing companies and owed millions to the Inland Revenue Department (NZ Property Finance Economy (industry Facebook group)).
“The reporting uses the name ‘Li’ and at least one related item identifies the person as ‘Zhiwei Li’, suggesting a name-variant issue.”
— HouGarden reporting, referencing court documents
The implication is clear: Li’s bankruptcy is not a simple debt dispute but a complex collapse involving multiple companies, potential tax obligations, and serious questions about financial management during the market downturn.
The allegation of cash transfers between failing companies, if proven, could transform this from a routine bankruptcy into a legal case involving preferential payments or even fraud. NZ’s Insolvency Service may take a keen interest.
What impact does the Auckland housing market have on property developers?
Market downturn as a cause of developer debt
- Falling house prices directly reduce the value of a developer’s inventory — completed homes and land holdings.
- Banks tighten lending criteria during downturns, cutting off refinancing options for already-stressed developers (NZ Herald (New Zealand’s largest daily newspaper)).
- Developers who relied on presales to fund construction find those contracts falling through as buyers walk away from deposits.
Broader implications for the Auckland construction industry
- Carters building supplies, as a major trade creditor, faces potential losses from developer bankruptcies.
- Subcontractors and small suppliers may go unpaid, threatening their own businesses (HouGarden (NZ-Chinese business news)).
- The construction industry’s payment chain is only as strong as its weakest link — and developer bankruptcies create cascading failures.
“The developer had personal liabilities of more than NZ$2 million. The affidavit in March 2025 acknowledged project failures.”
— Summarised from HouGarden reporting on court documents
“The companies allegedly owed millions to the Inland Revenue Department.”
— NZ Property Finance Economy Facebook group, reporting on social media discussion
The pattern: when a market cools, developers who cannot sell into a falling market drag down everyone in the chain — from building suppliers like Carters to the IRD as a tax creditor. Li’s case is not unique. Other Auckland developers may face similar pressures as the downturn continues.
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Frequently asked questions
How did Jack Li become a property developer?
Li worked as a real estate agent at Barfoot & Thompson while also pursuing property development projects. He operated through multiple companies, taking on debt to fund developments during the boom market that preceded the 2021–2025 downturn (NZ Herald (New Zealand’s largest daily newspaper)).
What companies did Jack Li owe money to apart from Carters?
Reporting indicates liabilities also involve the Inland Revenue Department (IRD), with allegations that his companies owed millions in unpaid taxes. The full list of creditors has not been publicly disclosed (NZ Property Finance Economy (industry Facebook group)).
Is Jack Li still licensed as a real estate agent?
It is not publicly confirmed whether Li retains his real estate licence. Barfoot & Thompson has not issued a statement regarding his employment status as of August 2025.
What is the process for bankruptcy in New Zealand?
A creditor (such as Carters building supplies) applies to the High Court for a bankruptcy order. Once granted, the Official Assignee manages the debtor’s assets and distributes proceeds to creditors. Bankruptcy typically lasts three years, after which discharge is possible (HouGarden (NZ-Chinese business news)).
Are other Auckland property developers facing similar debts?
Industry reports suggest multiple Auckland developers are under financial stress as the market downturn deepens. Li’s case is among the most publicly visible examples of developer insolvency in 2025 (NZ Herald (New Zealand’s largest daily newspaper)).
Can Jack Li discharge bankruptcy and start over?
Yes, bankruptcy discharge in NZ is typically automatic after three years, subject to any objections from creditors or the Official Assignee. He could theoretically return to property development after discharge, though obtaining financing would be significantly harder (HouGarden (NZ-Chinese business news)).
What was the value of Jack Li’s property portfolio?
The exact value is not publicly confirmed. However, his financial statement shows assets of NZ$22,000, suggesting either the portfolio had been largely sold, transferred, or had lost most of its value by the time of bankruptcy filing.
How does the Auckland market downturn affect construction?
Falling prices reduce developer margins, leading to project cancellations, delayed payments to suppliers like Carters, and increased risk for subcontractors. The downturn creates a domino effect through the construction supply chain (NZ Herald (New Zealand’s largest daily newspaper)).
For Auckland’s property market, the Jack Li case represents a warning signal that the downturn is now claiming casualties beyond home sellers. When a developer with NZ$2.357 million in liabilities and only NZ$22,000 in assets is forced into bankruptcy by a building supplies creditor, it means the pain is real and spreading. For other developers still holding debt from the boom years, the choice is becoming clear: find a way to restructure before creditors act, or follow Li into the bankruptcy courts.