The case underscores the impact of China Evergrande Group, which is struggling under $305 billion in debt, on the rest of the high-yield sector as liquidity dries up and sales slow.
Earlier this week, Chinese developer Sinic Holdings said it would likely default on bonds worth $250 million.
China Properties said it had failed to secure funds by Oct. 15, the maturity date of the notes, due to a "timing mismatch" and that it would not be able to make repayments until it had sold or refinanced some of its assets.
The Hong Kong-headquartered company said its controlling shareholder Wong Sai Chung had assured he would continue to provide support to the firm through the liquidity crisis.
For now, the notes would be delisted from foreign bourses, it added.
(Reporting by Anushka Trivedi in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)