(Bloomberg) -- An ultra luxury apartment in Hong Kong’s Mount Nicholson development — one of the most expensive apartment projects in Asia — was recently sold for a loss of HK$130 million ($16.6 million) as the city’s upscale home market struggles to recover from weak demand.

A pair of buyers purchased the 4,596-square-foot (427-square-meter) home for HK$390 million in late January, according to a document lodged with the Land Registry. The seller bought the property for HK$520 million in 2018, the data shows.

Hong Kong’s upscale home market has been under pressure amid Covid-19 restrictions and rising interest rates. The number of luxury residential sales in the first 10 months in 2022 fell 60% from the year before, according to the latest report from Centaline Property Agency.

The proportion of mainland Chinese — an important source of buyers — in the luxury market hit a new low of 2022, according to Savills Plc. Prolonged border lockdowns, muted business prospects and changing policies affected wealthy mainland Chinese appetite for trophy assets in Hong Kong, the firm added.

HK01 first reported the sale at Mount Nicholson.

Mount Nicholson made headlines in 2021 when the developers Wharf Holdings Ltd. and Nan Fung Development Ltd. sold an apartment at the project for HK$140,800 per square foot, the highest unit price for such property in Asia.

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