Core Viewpoint - The Hong Kong residential market has experienced its largest loss, highlighted by the sale of a luxury property at a significant depreciation from its original purchase price [1][3]. Group 1: Property Sale Details - The property at 15 Gough Hill Road was sold for 790 million HKD after two years of unsuccessful bidding, originally purchased for 2.1 billion HKD in 2016, resulting in a loss of 1.31 billion HKD, or a 62.4% decline [2][3]. - The property has a usable area of 18,000 square feet, with a garden of nearly 10,000 square feet and parking space of 2,788 square feet, and was once valued at a floor price of 227,400 HKD per square foot [3][4]. - The sale was complicated by financial issues leading to the property being taken over by East Asia Bank and categorized as a "bank sale" [3][4]. Group 2: Market Trends and Analysis - The overall luxury market in Hong Kong has declined by approximately 30% since its peak in 2021, with some properties experiencing declines of 35% to 40%, and bank sales typically seeing additional discounts of 15% to 20% [3][7]. - The pricing logic for luxury properties has shifted from "landmark premium" to "cash flow and risk discounting," indicating a change in buyer sentiment and market dynamics [7]. Group 3: Impact on Investors - Chen Hongtian, the chairman of Xiangqi Group, has seen a significant reduction in personal assets, with total investments in Hong Kong properties amounting to approximately 6.987 billion HKD since 2015 [9][12]. - The decline in property values has been exacerbated by financial difficulties faced by Chen's company, leading to a series of asset sales at substantial losses [4][16]. - The case serves as a warning regarding the risks associated with high leverage in real estate investments, particularly in a declining market [16].