He’s a property developer selling his wares under value. Before even considering whether a group of specific individuals are being treated at arms length, it’d raise concerns with the ATO (whether or not they’d be bothered investigating ATM is beside the point) that they weren’t legitimately showing their income. Add in providing non-commercial discounts to specific individuals at non-arms length transactions, that makes it all the more problematic.
Bank fraud would generally go the other way, inflating values but still knowingly providing improper values to the bank is fraud (although they usually catch it nowadays. The purchaser could borrow at a lower value to buy it, immediately turnaround and sell it for market value and make a tidy profit. That’s an issue if they picked it up at a dodgy value.
If you’re still not convinced by potential illegality, the economic ramifications might seem out of balance but change NRL player to local councillor.