The Hong Kong real estate market has recently received a shocking piece of news. A luxury residence located at The Peak in Hong Kong has changed hands for 790 million HKD, setting a record for the largest loss ever in the history of the Hong Kong residential market.

The mansion located at 15 Ge Fu Shan Road was originally owned by Chen Hongtian, the chairman of Shenzhen Xiangqi Group, or related parties. The property was purchased in 2016 for a staggering HKD 2.1 billion, but is now being sold for less than 40% of that price, resulting in a loss of up to HKD 1.31 billion, with a shocking drop of 62.4%.

This luxury residence has a usable area of 18,000 square feet, equipped with a nearly 10,000 square foot garden and a 2,788 square foot parking space, with a previous floor price reaching HKD 227,400. However, due to financial issues, the property was taken over by East Asia Bank in 2023, becoming what is known as a "bank-owned property." After several postponed tenders, a buyer was finally found.

It is worth noting that the transaction price this time was about HKD 43,700 per square foot, which is a significant decline compared to its peak period. This event has sparked attention and discussion about the direction of Hong Kong's high-end real estate market.

Industry experts point out that the Hong Kong luxury property market has overall dropped by about 30% since reaching its peak in 2021, with some luxury properties experiencing declines of 35% to 40%. For mortgagee sales, there is typically an additional discount of 15% to 20%. The significant drop in the luxury properties at The Peak is considered to be the result of a combination of "urgent bank sales" and "special cases."

This rare case of significant loss not only reflects the sluggish state of the luxury property market in Hong Kong but also mirrors the many uncertainties in the current economic environment both in Hong Kong and globally. For investors and market observers, this is undoubtedly a signal worth pondering, and it may also indicate a profound transformation that the Hong Kong real estate market may be undergoing.