Sai Kung’s “City of Losses” Strikes Again: Mount Pavilia Apartment Sold at $7 Million Loss

As the property market continues to adjust, even luxury developments haven’t been spared, with Sai Kung’s Mount Pavilia, often dubbed the “City of Losses,” now recording another major financial hit. A three-bedroom unit with a storeroom and parking space was recently sold for HK$15.088 million, translating to HK$12,754 per square foot. The original owner held the unit for seven years and suffered a paper loss of nearly HK$7.2 million, with the property’s value dropping by more than 30% — equivalent to the price of half a similar unit.

The transaction involved a high-floor, Flat D in Block 10 of Mount Pavilia, offering a saleable area of 1,183 square feet and a three-bedroom layout with a storeroom and garden view. According to Century 21, the unit was originally listed for HK$18 million, but after being on the market for about six months, it eventually sold for HK$15.088 million, including the parking space — a price cut of HK$2.912 million, or roughly 16.2%. The final price per square foot is considered in line with current market levels.

Records show the original owner purchased the flat and parking space directly from the developer in February 2018 for HK$22.28 million. After seven years of ownership, the sale resulted in a paper loss of HK$7.192 million, with the unit’s value plunging by about 32% over that period.

So far this year, Mount Pavilia has recorded 19 second-hand transactions, all at a loss. The extent of losses ranges from 12% to as much as 49%, marking it as one of the most loss-heavy luxury developments in the region.

28hse - No.1 HK Property Portal Squarefoot - HK Premium Property Portal