Hong Kong bank tries to sell mansion it bought at huge discount
The bank is trying to tap a rebound in the city’s housing market after a years-long downturn
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[HONG KONG] A Hong Kong bank that failed to sell a seized mansion at a steep discount last year is trying again as the luxury real estate market swings back to life.
Bank of East Asia is seeking to sell the luxury home at 15 Gough Hill Road for at least HK$1 billion (S$173 million) after purchasing the property six months ago, according to agents familiar with the plans.
The bank had tried to offload the house repeatedly after seizing it from Chen Hongtian in 2023, when the Chinese business tycoon missed loan repayments during a cash crunch.
Bank of East Asia shifted its role from creditor to owner last August when it purchased the property for HK$790 million, about 62 per cent lower than the HK$2.1 billion Chen paid for it, according to regulatory filings. The lender has refurbished the exterior walls of the building to attract buyers, the agents said.
A representative for Bank of East Asia said it does not comment on specific transactions.
The bank is trying to tap a rebound in Hong Kong’s housing market after a years-long downturn. Home prices in the city rose 3.25 per cent last year, the first annual increase in four years. Wall Street firms including Citigroup and Morgan Stanley are predicting values will jump further this year, fuelling renewed interest from buyers.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Sales of luxury properties are increasing. There were 81 deals for residences valued at more than US$10 million in the last quarter of 2025, the most since late 2021, according to Knight Frank. Hedge fund managers, bankers and corporate executives were among major buyers of big-ticket homes last year, helped by a buoyant stock market in the financial hub.
Chen, chairman of Cheung Kei Group, bought the mansion at Gough Hill Road in 2016, in one of the most expensive property transactions in Hong Kong at the time. The six-bedroom property in the upscale Peak neighbourhood spans more than 9,200 square feet (855 square metres) in floor space.
The fate of the home underscores how banks have been swept up in the city’s real estate boom and bust. Lenders saw non-performing loans rise due to missed payments by rich families, international funds and local developers hurt by the prolonged slump before the residential market began to pick up in recent months. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
