The China Daily reported the 23-year-old Olympic champion signed an endorsement contract with a Shanghai real estate group in which he would receive a luxurious four-bedroom apartment just so he could give it to his coach.
"I just want him to live in a bigger house," Liu said of his coach, Sun Haiping.
Sun is credited with guiding Liu to his extraordinary success, which began in Athens and continued this year in a world-record breaking run of 12.88 seconds in July.
The coach, who reportedly lives in a small Shanghai flat, was said to be pleased with his new home.
"I am quite happy knowing he signed the endorsement just for an apartment for me," said Sun, who has coached Liu since 2001.
"It gives me a lot pride to see that he really cares about me."
Liu's athletic prowess has made him one of China's most bankable stars.
The Shanghai native is reportedly only second to another home-town favorite, the NBA Houston Rockets star Yao Ming, in high-earning commercial endorsements.
Coca-Cola, Visa credit cards, Nike sports gear and EMS express delivery service are among some of his current commercial deals.
The Shanghai Youth Daily estimated that the Liu was earning more than $2.5 million dollars per year from his commercial deals.