The largest loss record in Hong Kong's residential history has been established! Purchased at an exorbitant price 9 years ago, now suffering a huge loss of HKD 1.3 billion, the original owner is the mysterious wealthy individual from Shenzhen, Chen Hongtian

The largest loss in the Hong Kong residential market has occurred.

The mansion at 15 Gough Hill Road, held by Chen Hongtian, chairman of Shenzhen Xiangqi Group, or related parties, was sold for HKD 790 million after two years of bidding.

The purchase price of this property in 2016 was HKD 2.1 billion, resulting in a depreciation of HKD 1.31 billion, a decline of 62.4%, with a price per square foot of approximately HKD 43,700 (1 square foot is approximately 0.0929 square meters).

Reporters from the Daily Economic News noted that this property was taken over by BANK OF E ASIA in 2023 due to financial issues, becoming a bank-owned property, and it took multiple bid cuts and extensions to find a buyer. The usable area of the property is 18,000 square feet, with nearly 10,000 square feet of garden and 2,788 square feet of parking space, with a floor price per square foot once reaching HKD 227,400.

Note: A bank-owned property is a term in the Hong Kong real estate market, referring to properties that have been reclaimed and taken over by creditors (usually banks) due to the original owner's failure to repay loans on time, and are subsequently sold by the creditors to settle debts.

"The overall luxury property market in Hong Kong has generally fallen by about 30% since peaking in 2021, with some luxury properties declining by 35% to 40%. Bank-owned properties will additionally be discounted by 15% to 20%. This case at Gough Hill Road has seen a decline of over 60%, representing a combination of 'urgent bank sale + special individual case,'" Huang Lichong, president of Huisheng International Capital, analyzed to reporters on the afternoon of August 21.

Purchased for HKD 2.1 Billion Nine Years Ago

In June 2016, during a hot period in the Hong Kong property market, Chen Hongtian's side purchased the property at 15 Gough Hill Road from Jones Lang LaSalle for HKD 2.1 billion, with a price per square foot of HKD 227,400, setting a new record for price per square foot in Hong Kong and briefly becoming a benchmark for luxury properties worldwide.

This property, located in a traditional luxury residential area of Hong Kong, not only boasts a prime location but also top-notch specifications: a usable area of 18,000 square feet, including a three-story detached house and a three-story basement, designed with six bedrooms and six suites, was planned for high-end renovation for personal use at that time.

However, nine years later, this sensational luxury property transaction has come to a regrettable end.

According to a statement from Xiangqi Group in May 2023, the company is facing "periodic cash flow issues," primarily due to several large receivables being temporarily reneged and obstacles in handling mainland business.

Reporters noted that since the sales arrangement was first announced in August 2023, the sale of this mansion has been exceptionally difficult.

After nearly two years of repeated delays, the administrator lowered the intended price to the range of HKD 700 million to HKD 800 million in January 2025, ultimately selling for HKD 790 million on August 19.

It is worth noting that the property had already obtained an occupancy permit in 2019, but the renovation work was still incomplete, and some areas were even in a state of neglect at the time of sale.

This loss of HKD 1.31 billion even exceeds the HKD 1 billion transaction price of the super luxury mansion Block C of The Peak in Kowloon this year, unprecedented in the Hong Kong residential market In Huang Lichong's view, in the current market environment, the pricing logic of luxury homes has shifted from "landmark premium" to "cash flow and risk discounting." "In the past, single ultra-large units had poor liquidity and high maintenance costs, giving buyers complete bargaining power. Even if Hong Kong fully 'withdraws the spice' in 2024, transaction prices will still hover at the bottom, and the premium story of super luxury homes is hard to replicate," said Huang Lichong.

Note: "Withdraw the spice" is a term used in the Hong Kong and Macau real estate market, referring to the government's withdrawal of strong regulatory measures implemented to curb overheating in the property market.

Significant Shrinkage of Personal Assets

Public information shows that Chen Hongtian has been making significant property acquisitions in Hong Kong since 2015, involving an amount of approximately HKD 6.987 billion. In addition to 15 Goff's Hill Road, he also acquired the A and B blocks of the Hung Hom Cheung Kee Centre, as well as the luxury residence Aohuan in the Eastern Mid-Levels of Hong Kong Island.

The most representative property is the Hung Hom Cheung Kee Centre.

In July 2016, Chen Hongtian purchased the entire East Block of One HarbourGate in Hung Hom from Wheelock Properties for HKD 4.5 billion, naming it Cheung Kee Centre, as the group's Hong Kong headquarters.

This 15-story, seafront Grade A office building has a total area of approximately 279,000 square feet and has 155 parking spaces. In December 2024, it was purchased by Hong Kong Metropolitan University for HKD 2.65 billion, representing a book depreciation of HKD 1.85 billion from the purchase price, a decline of 41.1%.

In terms of residential properties, apart from 15 Goff's Hill Road, Chen Hongtian's unit at 53 Stubbs Road on The Peak was also sold in September 2023 for approximately HKD 420 million, down about 38% from the public tender price of HKD 680 million that year.

Meanwhile, in July this year, a low-floor B unit in Block 1 of the Mid-Levels's Jiafuli Garden, owned by the Chen Hongtian family, was sold by the mortgagee for HKD 64.55 million. This unit is designed with four rooms and has a usable area of 2,348 square feet.

According to the reporter's analysis, Chen Hongtian's asset expansion period mainly concentrated from 2015 to 2017. During these three years, Chen Hongtian's total property investment in Hong Kong and the UK reached nearly HKD 10 billion, heavily relying on bank financing. However, after 2018, due to factors such as adjustments in the real estate market, the value of his assets began to continuously shrink.

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