24 Feb 2026
Bank of East Asia offers luxury property at a discount
Bank of East Asia is asking approximately $128 million.
- RE+D Magazine
A bank in Hong Kong is attempting to sell a luxury residence it acquired at a significantly low price just a few months ago, in a move that reflects both the pressures and the signs of recovery in the city’s high-end real estate market.
According to information published by Bloomberg, Bank of East Asia Ltd. is attempting to sell a property in the upscale Gough Hill Road area, asking for at least HK$1 billion (approximately US$128 million), after having purchased it at a significant discount around six months ago.
The transaction highlights the strategy of financial institutions to leverage luxury properties that came into their possession due to loan defaults, during a period in which the high-end residential market shows signs of stabilization after years of decline.
Pressure from the Property Crisis
The real estate market in Hong Kong has suffered a severe downturn in recent years, with prices falling more than 30% since 2021 due to rising interest rates, the pandemic, and geopolitical tensions. This development has affected both investors and banks with high exposure to the sector, leading to an increase in non-performing loans and asset foreclosures.