Two bedroom apartment in Pak Ao Shan, Mid Levels, North Point, Hong Kong sold for HKD 21 million, resulting in a depreciation of over 20% in housing prices

1、 Trading loss: 11 years of holding onto huge losses of over 20%

The unit that changed hands this time is Block B, a very high-rise building in Baiaoshan, with a practical area of 735 square feet. It is a classic two bedroom suite with storage room. According to Meilian Property, the unit was originally priced at HKD 27.5 million, but after significant bargaining by the buyer, it was ultimately sold for HKD 21 million, with a practical unit price of approximately HKD 28571.

According to the information, the original owner purchased this unit for HKD 26.78 million during the peak of the real estate market in 2015. After 11 years of long-term holding, not only did they fail to enjoy asset appreciation during this period, but they also incurred a loss of HKD 5.78 million on their books during this transfer, with the unit value evaporating by more than one-fifth. Even with years of rental income included, it is difficult to cover such a huge price difference loss.

2、 Halo fades away: luxury homes in North Point become a 'city of erosion'

Pak Ao Shan was jointly developed by Hong Kong Development Association and New World. It is located on Tin Hau Temple Road in the mid levels of North Point and was once a popular luxury new development in the east of Hong Kong Island. The estate consists of 5 large buildings, providing 358 units. With a peaceful mid mountain environment, complete guest amenities, and Victoria Harbour views, it once led the regional housing prices when it was put on sale in 2015.

However, since the peak and decline of the Hong Kong real estate market in 2021, Pak Ao Shan has become one of the housing estates with the deepest decline. In recent years, it has repeatedly experienced "sharp losses" in transactions, and has been jokingly referred to by the industry as the "city of losses" in Hong Kong Island. Even if the overall Hong Kong real estate market recovers in 2026, with both transaction volume and prices increasing synchronously, properties like Pak Ao Shan that entered the market at a high level, due to their huge decline in the early stage, still have transaction prices far below their historical peak.

3、 Rebound and non general rise: structural dilemma under the differentiation of the real estate market

This transaction reflects the deep pattern of "overall rebound and internal tearing" in the current Hong Kong real estate market. In the first quarter of 2026, the Hong Kong real estate market saw a surge in transactions, with both primary and secondary transactions increasing by over 40% year-on-year, and the property price index reaching a two-year high. But this round of recovery shows obvious structural differentiation:

Core Leading Prices: Traditional core luxury residential areas such as the Southern District of Hong Kong Island and Kowloon Station have approached historical highs due to the pursuit of mainland funds.

Edge pressure: Secondary luxury homes in non core areas such as North Point and Tin Hau have strong bargaining power due to high supply and weakened competitiveness, resulting in weak price rebound for buyers.