FORM 10-Q
                                     
                    SECURITIES AND EXCHANGE COMMISSION
                                     
                          Washington, D.C. 20549

(Mark One)

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
                     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1997
                                     
                                    OR
                                     
[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                     SECURITIES EXCHANGE ACT OF 1934

For the transition period from      N/A

Commission file number            0-17664

           JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
           (Exact name of registrant as specified in its charter)

          Massachusetts                             04-2969061
 (State or other jurisdiction of       (I.R.S. Employer Identification No.)
  incorporation or organization)

                 200 Clarendon Street, Boston, MA  02116
                 (Address of principal executive offices)
                                (Zip Code)

                              (800) 722-5457
           Registrant's telephone number, including area code:

                                   N/A
(Former name, former address and former fiscal year, if changed since  last
report)

Indicate  by  check mark whether the registrant (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.
                            Yes     X      No


<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)


                                  INDEX


PART I:     FINANCIAL INFORMATION                                 PAGE

   Item 1  -   Financial Statements:

                Balance Sheets at September 30, 1997 and
                December 31, 1996                                      3
                
                Statements of Operations for the Three and Nine
                Months Ended September 30, 1997 and 1996               4
                
                Statements of Partners' Equity for the
                Nine Months Ended September 30, 1997 and
                for the Year Ended December 31, 1996                   5
                
                Statements of Cash Flows for the Nine
                Months Ended September 30, 1997 and 1996               6
                
                Notes to Financial Statements                       7-17
                
  Item 2  -    Management's Discussion and Analysis of
                Financial Condition and Results of Operations      18-27


PART II:   OTHER INFORMATION                                        28-29
























                                    2
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      PART I:  FINANCIAL INFORMATION
                      Item 1:  Financial Statements

                              BALANCE SHEETS
                               (Unaudited)

                                  ASSETS
                                                September 30,   December 31,
                                                     1997           1996
                                                    -----          -----

Cash and cash equivalents                       $3,480,938     $8,669,990
Restricted cash                                    100,951        111,612
Other assets                                       154,215        112,762

Deferred expenses, net of accumulated
 amortization of $1,143,115 in 1997
 and $1,086,688 in 1996                            898,594      1,034,045

Real estate loans                                1,700,000      5,245,361

Investment in joint venture                      7,401,706      7,574,268

Investment in property:
 Land                                            5,040,000      5,040,000
 Buildings and improvements                     14,218,208     14,218,208
                                               -----------    -----------
                                                19,258,208     19,258,208
 Less:   accumulated depreciation                4,230,562      3,875,115
                                               -----------    -----------
                                                15,027,646     15,383,093
                                               -----------    -----------
       Total assets                            $28,764,050    $38,131,131
                                              ============    ===========

                     LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued expenses             $339,620       $282,825
Accounts payable to affiliates                     111,803         88,991
                                               -----------    -----------
 Total liabilities                                 451,423        371,816

Partners' equity/(deficit):
 General Partner's deficit                       (172,581)      (166,057)
 Limited Partners' equity                       28,485,208     37,925,372
                                               -----------    -----------
 Total partners' equity                         28,312,627     37,759,315
                                               -----------    -----------
     Total liabilities and partners' equity    $28,764,050    $38,131,131
                                               ===========    ===========

                    See Notes to Financial Statements

                                    3
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                         STATEMENTS OF OPERATIONS
                               (Unaudited)
<TABLE>
<CAPTION>
                                                Three Months Ended          Nine Months Ended
                                                  September 30,               September 30,
                                                 1997        1996          1997            1996
                                                -----       -----         -----            ----
<S>                                              <C>         <C>           <C>             <C>
Income:
  Rental income                                $569,252    $651,243     $1,628,076     $1,894,511
  Income from joint venture                     184,353     189,938        559,063        572,852
  Interest income                                84,190     216,840        310,926        655,282
                                              ---------   ---------      ---------      ---------

  Total income                                  837,795   1,058,021      2,498,065      3,122,645

Expenses:
  Depreciation                                  118,482     156,957        355,447        470,869
  Property operating expenses                    77,454     124,879        270,230        362,488
  General and administrative expenses            48,991      63,736        226,352        180,937
  Amortization of deferred expenses              56,140      68,878        169,895        215,340
                                               --------   ---------      ---------      ---------
     Total expenses                             301,067     414,450      1,021,924      1,229,634
                                               --------   ---------      ---------      ---------

     Net income                                $536,728    $643,571     $1,476,141     $1,893,011
                                              =========   =========     ==========     ==========

Allocation of net income:
     General Partner                             $5,367      $6,436        $14,761        $18,930
     John Hancock Limited Partner                     -           -              -              -
     Investors                                  531,361     637,135      1,461,380      1,874,081
                                              ---------   ---------     ----------     ----------
                                               $536,728    $643,571     $1,476,141     $1,893,011
                                              =========   =========     ==========     ==========

Net income per Unit                              $0.20        $0.24         $0.56          $0.72
                                                  =====       =====         =====          =====
</TABLE>










                    See Notes to Financial Statements

                                   4
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      STATEMENTS OF PARTNERS' EQUITY
                               (Unaudited)

                 Nine Months Ended September 30, 1997 and
                       Year Ended December 31, 1996

<TABLE>
<CAPTION>
                                                         General          Limited
                                                         Partner          Partners       Total
                                                         --------        ---------       ------
<S>                                                        <C>              <C>           <C>

Partner's equity/(deficit) at January 1, 1996
    (2,601,552 Units outstanding)                      ($152,910)      $39,226,989    $39,074,079

Less:   Cash distributions                               (29,168)      (2,887,723)    (2,916,891)

Add:    Net income                                         16,021        1,586,106      1,602,127
                                                        ---------      -----------    -----------
Partner's equity/(deficit) at December 31, 1996
   (2,601,552 Units outstanding)                        (166,057)       37,925,372     37,759,315

Less:   Cash distributions                               (21,285)     (10,901,544)   (10,922,829)

Add:    Net income                                         14,761        1,461,380      1,476,141
                                                        ---------      -----------    -----------
Partner's equity/(deficit) at September 30, 1997
   (2,601,552 Units outstanding)                       ($172,581)      $28,485,208    $28,312,627
                                                        =========      ===========    ===========
</TABLE>




















                    See Notes to Financial Statements

                                      5
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                               (Unaudited)

                                                      Nine Months Ended
                                                        September 30,
                                                     1997            1996
                                                     ----            ----

Operating activities:
  Net income                                      $1,476,141     $1,893,010

  Adjustments to reconcile net income to
  net cash provided by operating activities:

     Depreciation                                    355,447        470,869
     Amortization of deferred expenses               169,895        215,340
     Cash distributions over equity in
      income from joint venture                      172,562        185,600
                                                  ----------     ----------
                                                   2,174,045      2,764,819

  Changes in operating assets and liabilities:
     Decrease/(increase) in restricted cash           10,661       (16,898)
     Increase in other assets                       (41,453)       (99,560)
     Increase in accounts payable and
      accrued expenses                                56,795        304,885
     Increase in accounts payable to
      affiliates                                      22,812          3,473
                                                  ----------     ----------
  Net cash provided by operating activities        2,222,860      2,956,719

Investing activities:
  Principal payments on real estate loans          3,545,361        762,572
  Increase in deferred expenses                     (34,444)       (37,224)
                                                  ----------     ----------
  Net cash provided by investing activities        3,510,917        725,348

Financing activities:
  Cash distributed to Partners                  (10,922,829)    (2,154,821)
                                                  ----------     ----------
  Net cash used in financing activities         (10,922,829)    (2,154,821)
                                                  ----------     ----------
  Net (decrease)/increase in cash and cash
     equivalents                                 (5,189,052)      1,527,246

     Cash and cash equivalents at beginning
      of year                                      8,669,990      3,520,394
                                                  ----------     ----------
     Cash and cash equivalents at end
      of period                                   $3,480,938     $5,047,640
                                                  ==========     ==========

                    See Notes to Financial Statements

                                    6
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

1. Organization of Partnership
     ---------------------------
     John   Hancock   Realty  Income  Fund-II  Limited   Partnership   (the
     "Partnership")  was  formed  under the Massachusetts  Uniform  Limited
     Partnership  Act  on  June 30, 1987.  As of September  30,  1997,  the
     partners in the Partnership consisted of John Hancock Realty Equities,
     Inc.  (the "General Partner"), a wholly-owned, indirect subsidiary  of
     John  Hancock  Mutual  Life  Insurance Company;  John  Hancock  Realty
     Funding,  Inc.  (the  "John Hancock Limited  Partner");  John  Hancock
     Income  Fund-II  Assignor, Inc. (the "Assignor Limited Partner");  and
     4,509  Unitholders  (the "Investors").  The Assignor  Limited  Partner
     holds  2,601,552  Assignee Units (the "Units"), representing  economic
     and  certain other rights attributable to Investor Limited Partnership
     Interests  in the Partnership, for the benefit of the Investors.   The
     John  Hancock  Limited Partner, the Assignor Limited Partner  and  the
     Investors  are collectively referred to as the Limited Partners.   The
     General Partner and the Limited Partners are collectively referred  to
     as  the  Partners.  The initial capital of the Partnership was $2,000,
     representing  capital contributions of $1,000 by the  General  Partner
     and  $1,000  from  the  John  Hancock Limited  Partner.   The  Amended
     Agreement  of Limited Partnership of the Partnership (the "Partnership
     Agreement") authorized the issuance of up to 5,000,000 Assignee  Units
     at  $20  per  Unit.  During the offering period, which  terminated  on
     January  2,  1989,  2,601,552 Units were sold  and  the  John  Hancock
     Limited  Partner made additional capital contributions of  $4,161,483.
     There were no changes in the number of Units outstanding subsequent to
     the termination of the offering period.

     The  Partnership is engaged solely in the business of  (i)  acquiring,
     improving,  holding for investment and disposing of  existing  income-
     producing  retail,  industrial and office properties  on  an  all-cash
     basis,  free  and  clear  of mortgage indebtedness,  and  (ii)  making
     mortgage  loans  consisting of conventional first mortgage  loans  and
     participating  mortgage  loans  secured  by  income-producing  retail,
     industrial   and   office  properties.   Although  the   Partnership's
     properties  were  acquired and are held free  and  clear  of  mortgage
     indebtedness, the Partnership may incur mortgage indebtedness  on  its
     properties under certain circumstances as specified in the Partnership
     Agreement.

     The  latest  date  on  which the Partnership is due  to  terminate  is
     December  31, 2017, unless it is sooner terminated in accordance  with
     the  terms of the Partnership Agreement.  It is expected that, in  the
     ordinary course of the Partnership's business, the investments of  the
     Partnership  will  be  disposed of, and  the  Partnership  terminated,
     before December 31, 2017.




                                    7

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued))
                               (Unaudited)

2.   Significant Accounting Policies
   -------------------------------
     The accompanying unaudited financial statements have been prepared  in
     accordance  with generally accepted accounting principles for  interim
     financial information and with the instructions for Form 10-Q and Rule
     10-01 of Regulation S-X.  Accordingly, they do not include all of  the
     information  and  footnotes required by generally accepted  accounting
     principles  for  complete financial statements.   In  the  opinion  of
     management, all adjustments (consisting of normal recurring  accruals)
     considered  necessary for a fair representation  have  been  included.
     Operating results for the nine month period ended September  30,  1997
     are not necessarily indicative of the results that may be expected for
     the year ending December 31, 1997.  For further information, refer  to
     the  financial  statements  and  footnotes  thereto  included  in  the
     Partnership's  Annual Report on Form 10-K for the year ended  December
     31, 1996.

     The  preparation of financial statements in conformity with  generally
     accepted  accounting principles requires management to make  estimates
     and  assumptions  that  affect  the reported  amounts  of  assets  and
     liabilities and disclosure of contingent assets and liabilities at the
     date  of  the financial statements and the reported amounts of revenue
     and  expenses during the reporting period.  Actual results may  differ
     from those estimates.

     Cash  equivalents  are highly liquid investments  with  maturities  of
     three  months or less when purchased.  These investments are  recorded
     at  cost  plus  accrued  interest, which  approximates  market  value.
     Restricted  cash  represents  funds  restricted  for  tenant  security
     deposits.

     Real  estate  loans  are  recorded at  amortized  cost  unless  it  is
     determined by the General Partner that in economic substance the  loan
     represents  an  investment  in property or  joint  venture.   In  such
     instances,  these  investments  are accounted  for  using  the  equity
     method.

     Investments in property are recorded at the lower of cost  or  market.
     Cost  includes  the  initial  purchase  price  of  the  property  plus
     acquisition and legal fees, other miscellaneous acquisition costs  and
     the cost of significant improvements.

     Depreciation  has  been  provided on a straight-line  basis  over  the
     estimated  useful lives of the various assets:  thirty years  for  the
     buildings  and  five years for related improvements.  Maintenance  and
     repairs are charged to operations as incurred.

     Investment in joint venture is recorded using the equity method.

                                    8


<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

2.   Significant Accounting Policies (continued)
   -------------------------------------------
     Fees  paid to the General Partner for the acquisition of joint venture
     and  mortgage  loan  investments have  been  deferred  and  are  being
     amortized  over  the  life of the investments  to  which  they  apply.
     During  1993,  the  Partnership reduced  the  period  over  which  its
     remaining  deferred acquisition fees are amortized from thirty  years,
     the  estimated useful life of the buildings owned by the  Partnership,
     to  eight and one-half years, the then estimated remaining life of the
     Partnership.   Capitalized tenant improvements and  lease  commissions
     are  being  amortized on a straight-line basis over the terms  of  the
     leases to which they relate.
     
     The  net  income  per Unit for the periods hereof  was  calculated  by
     dividing  the  Investors' share of net income by the number  of  Units
     outstanding at the end of such period.

     No  provision  for  income  taxes  has  been  made  in  the  Financial
     Statements  since such taxes are the responsibility of the  individual
     Partners and not of the Partnership.

     Certain 1996 amounts have been reclassified to be consistent with  the
     1997 presentation.

3.   The Partnership Agreement
-----------------------------
     Distributable  Cash  from  Operations  (defined  in  the   Partnership
     Agreement) is distributed 1% to the General Partner and the  remaining
     99% in the following order of priority:  first, to the Investors until
     they receive a 7% non-cumulative, non-compounded annual cash return on
     their Invested Capital (defined in the Partnership Agreement); second,
     to  the General Partner to pay the Subordinated Allocation (defined in
     the  Partnership Agreement) equal to 3 1/2% of Distributable Cash from
     Operations  for managing the Partnership's activities; third,  to  the
     John  Hancock  Limited Partner until it receives a 7%  non-cumulative,
     non-compounded annual cash return on its Invested Capital; fourth,  to
     the  Investors  and the John Hancock Limited Partner in proportion  to
     their  respective  Capital Contributions (defined in  the  Partnership
     Agreement),   until   they  have  received   a   10%   non-cumulative,
     non-compounded annual cash return on their Invested Capital; fifth, to
     the  General Partner to pay the Incentive Allocation (defined  in  the
     Partnership  Agreement)  equal to 2 1/2% of  Distributable  Cash  from
     Operations;  and sixth, to the Investors and the John Hancock  Limited
     Partner in proportion to their respective Capital Contributions.   Any
     Distributable Cash from Operations which is available as a result of a
     reduction  of working capital reserves funded by Capital Contributions
     of the Investors will be distributed 100% to the Investors.



                                    9

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

3. The Partnership Agreement (continued)
   -------------------------------------
     Cash  from  a Sale, Financing or Repayment (defined in the Partnership
     Agreement) of a Partnership investment is first used to pay all  debts
     and  liabilities  of the Partnership then due and  then  to  fund  any
     reserves  for contingent liabilities.  Cash from Sales, Financings  or
     Repayments  is  then  distributed and paid in the following  order  of
     priority:   first,  to  the  Investors and the  John  Hancock  Limited
     Partner, with the distribution made between the Investors and the John
     Hancock  Limited  Partner  in proportion to their  respective  Capital
     Contributions,  until  the  Investors and  the  John  Hancock  Limited
     Partner  have  received  an amount equal to  their  Invested  Capital;
     second, to the Investors until they have received, after giving effect
     to  all  previous distributions of Distributable Cash from  Operations
     and  any  previous  distributions of Cash from  Sales,  Financings  or
     Repayments  after the return of their Invested Capital, the Cumulative
     Return on Investment (defined in the Partnership Agreement); third, to
     the  John Hancock Limited Partner until it has received, after  giving
     effect  to  all  previous  distributions of  Distributable  Cash  from
     Operations  and  any  previous  distributions  of  Cash  from   Sales,
     Financings or Repayments after the return of its Invested Capital, the
     Cumulative Return on Investment; fourth, to the General Partner to pay
     any  Subordinated  Disposition Fees then payable pursuant  to  Section
     6.4(c)  of  the Partnership Agreement; and fifth, 99% to the Investors
     and  the  John Hancock Limited Partner and 1% to the General  Partner,
     with  the distribution made between the Investors and the John Hancock
     Limited   Partner   in   proportion  to   their   respective   Capital
     Contributions.

     Cash  from  the  sale  or repayment of the last of  the  Partnership's
     properties or mortgage loans is distributed in the same manner as Cash
     from  Sales,  Financings or Repayments, except that before  any  other
     distribution is made to the Partners, each Partner shall first receive
     from  such cash, an amount equal to the then positive balance, if any,
     in  such Partner's Capital Account after crediting or charging to such
     account the profits or losses for tax purposes from such sale.  To the
     extent,  if  any, that a Partner is entitled to receive a distribution
     of  cash based upon a positive balance in its capital account prior to
     such  distribution,  such distribution will be  credited  against  the
     amount  of  such cash the Partner would have been entitled to  receive
     based  upon  the manner of distribution of Cash from Sales, Financings
     or Repayments, as specified in the previous paragraph.
     
     
     
     
     
     
     
     
                                    10
     
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

3. The Partnership Agreement (continued)
   -------------------------------------
     Profits for tax purposes from the normal operations of the Partnership
     for each fiscal year are allocated to the Partners in the same amounts
     as  Distributable Cash from Operations for that year.  If such profits
     are  less  than Distributable Cash from Operations for any year,  then
     they  are allocated in proportion to the amounts of Distributable Cash
     from  Operations allocated for that year.  If such profits are greater
     than  Distributable  Cash  from Operations  for  any  year,  they  are
     allocated  1%  to  the  General Partner and 99% to  the  John  Hancock
     Limited  Partner and the Investors, with the allocation  made  between
     the  John  Hancock Limited Partner and the Investors in proportion  to
     their respective Capital Contributions.  Losses for tax purposes  from
     the  normal  operations of the Partnership are  allocated  1%  to  the
     General  Partner and 99% to the John Hancock Limited Partner  and  the
     Investors,  with the allocation made between the John Hancock  Limited
     Partner  and  the Investors in proportion to their respective  Capital
     Contributions.

     Profits  and Losses from Sales, Financings or Repayments are generally
     allocated 99% to the Limited Partners and 1% to the General Partner.

     Neither  the  General Partner nor any Affiliate  (as  defined  in  the
     Partnership  Agreement)  of  the  General  Partner  shall  be  liable,
     responsible  or accountable in damages to any of the Partners  or  the
     Partnership  for  any act or omission of the General Partner  or  such
     affiliate in good faith on behalf of the Partnership within the  scope
     of  the  authority granted to the General Partner by  the  Partnership
     Agreement and in the best interest of the Partnership, except for acts
     or  omissions constituting fraud, negligence, misconduct or breach  of
     fiduciary  duty.   The  General Partner and its Affiliates  performing
     services  on behalf of the Partnership shall be entitled to  indemnity
     from  the Partnership for any loss, damage, or claim by reason of  any
     act  performed  or omitted to be performed by the General  Partner  or
     such  Affiliates in good faith on behalf of the Partnership and  in  a
     manner  within  the  scope of the authority  granted  to  the  General
     Partner by the Partnership Agreement and in the best interest  of  the
     Partnership, except that they shall not be entitled to be  indemnified
     in  respect of any loss, damage, or claim incurred by reason of fraud,
     negligence,  misconduct, or breach of fiduciary duty.   Any  indemnity
     shall be provided out of and to the extent of Partnership assets only.
     The Partnership shall not advance any funds to the General Partner  or
     its Affiliates for legal expenses and other costs incurred as a result
     of  any  legal  action initiated against the General  Partner  or  its
     Affiliates  by  a  Limited  Partner in the Partnership,  except  under
     certain specified circumstances.




                                    11

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

4. Transactions with the General Partner and Affiliates
   ----------------------------------------------------
     Fees  and expenses incurred and/or paid by the General Partner or  its
     Affiliates  on behalf of the Partnership during the nine months  ended
     September  30, 1997 and 1996 and to which the General Partner  or  its
     affiliates  are  entitled to reimbursement from the  Partnership  were
     $175,485  and $125,128, respectively.  These expenses are included  in
     expenses in the Statements of Operations.

     The  Partnership provides indemnification to the General  Partner  and
     its Affiliates for any acts or omissions of the General Partner or  an
     Affiliate in good faith on behalf of the Partnership, except for  acts
     or  omissions constituting fraud, negligence, misconduct or breach  of
     fiduciary   duty.    The   General   Partner   believes   that    this
     indemnification  applies to the class action  complaint  described  in
     Note  10.   Accordingly, included in the Statements of Operations  for
     the nine months ended September 30, 1997 and 1996 were $40,759 and $0,
     respectively,  representing the Partnership's share of costs  incurred
     by the General Partner and its Affiliates relating to the class action
     complaint.   As of September 30, 1997, the Partnership has  accrued  a
     total  of  $82,234 as its share of the costs incurred by  the  General
     Partner and its Affiliates resulting from this matter.

     Accounts  payable to affiliates represents amounts due to the  General
     Partner  or  its  Affiliates  for various  services  provided  to  the
     Partnership, including amounts to indemnify the General Partner or its
     Affiliates  for  claims  incurred by them  in  connection  with  their
     actions with respect to the Partnership.  All amounts accrued  by  the
     Partnership  to  indemnify the General Partner or its  Affiliates  for
     legal  fees  incurred by them, shall not be paid unless or  until  all
     conditions  set  forth in the Partnership Agreement for  such  payment
     have been fulfilled.

     The  General  Partner  serves  in a similar  capacity  for  two  other
     affiliated real estate limited partnerships.

5. Investment in Property
   ----------------------
   Investment   in   property   at  cost  consists   of   managed,   fully-
   operating,commercial real estate as follows:
<TABLE>
<CAPTION>
                                                         September 30,         December 31,
                                                              1997                 1996
                                                              ----                 ----
     <S>                                                      <C>                  <C>
      Park Square Shopping Center                          $12,886,230         $12,886,230
      Miami International Distribution Center                6,371,978           6,371,978
                                                           -----------         -----------
                                                           $19,258,208         $19,258,208
                                                           ===========         ===========
</TABLE>
                                    12

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

5. Investment in Property (continued)
   ----------------------------------
     The  real  estate  market  is cyclical in  nature  and  is  materially
     affected  by  general economic trends and economic conditions  in  the
     market  where  a  property is located.  As a result, determination  of
     real estate values involves subjective judgments.  These judgments are
     based  on current market conditions and assumptions related to  future
     market conditions.  These assumptions involve, among other things, the
     availability of capital, occupancy rates, rental rates, interest rates
     and  inflation rates.  Amounts ultimately realized from each  property
     may  vary  significantly from the values presented and the differences
     could  be  material.   Actual market values  of  real  estate  can  be
     determined  only  by  negotiation  between  the  parties  in  a  sales
     transaction.

     The  Partnership  leases  its  properties  to  non-affiliated  tenants
     primarily under long-term operating leases.

6. Real Estate Loans
   -----------------
     On March 10, 1988, the Partnership made a $1,700,000 participating non-
     recourse  mortgage  loan to a non-affiliated borrower,  secured  by  a
     first  mortgage on commercial real estate known as 205 Newbury Street,
     located  in  Boston,  Massachusetts.  Under  the  terms  of  the  loan
     agreement, the borrower is required to pay interest only monthly at an
     annual rate of 9.5% with the entire outstanding principal balance  due
     on  April  1,  1998.  In addition to these amounts,  the  borrower  is
     obligated to pay the Partnership 25% of the net cash flow derived from
     the operations of the property during the term of the loan and 25%  of
     the  Net  Appreciated Value of the property (defined in the Contingent
     Interest Agreement) upon its sale or refinancing.  Contingent interest
     payments,  based  on  the net cash flow from the  property,  were  not
     received  from 1990 through 1995 because the property did not generate
     any cash flow in excess of the required minimum debt service payments.
     During  the  nine months ended September 30, 1997 and the  year  ended
     December  31,  1996,  the  Partnership  received  contingent  interest
     payments, the amount of which is not material.
     
     On June 30, 1989, the Partnership made a $5,500,000 mortgage loan to a
     non-affiliated  borrower, secured by a first  mortgage  on  commercial
     real  estate known as the General Camera Corporation Building, located
     in  New  York,  New  York.   In  addition,  the  loan  was  personally
     guaranteed by the principal stockholders of General Camera Corporation
     ("GCC").   Under  the  original terms of the loan agreement,  GCC  was
     required to pay interest only monthly at an annual rate of 11%.
     
     
     
     
     
                                    13
     
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

6. Real Estate Loans (continued)
   -----------------------------
     Effective  June 1, 1994, the loan agreement was amended i) to  require
     GCC  to  make  a one-time payment of $250,000 towards the  outstanding
     balance  of  the  loan  and  ii) to require that  all  future  monthly
     payments  include  amounts  to  amortize  the  then  outstanding  loan
     balance.   GCC was required to make payments of $60,416 per  month  on
     the  first day of each month commencing on July 1, 1994 and ending  on
     June  1, 1995.  Commencing on July 1, 1995 and ending on June 1, 1996,
     payments of $85,416 per month were required on the first day  of  each
     month.  The entire unamortized principal balance of $4,606,110 and all
     accrued but unpaid interest came due on July 1, 1996.
     
     During  the  second  quarter  of 1996, GCC  requested  a  three  month
     extension  of time in which to satisfy the loan while it continued  to
     pursue  alternate  financing.  The General Partner  granted  GCC  this
     extension  in  consideration  of  GCC making  an  additional  one-time
     payment of $250,000 to reduce the outstanding principal balance of the
     loan.  In addition, GCC was required to make monthly loan payments  of
     $85,416 from July 1, 1996 through September 1, 1996.  On July 1, 1996,
     GCC  made the $250,000 payment as required by the extension agreement.
     During  August  1996, GCC made an additional payment  of  $125,000  to
     further  reduce the outstanding principal balance of  the  loan.   The
     entire  unamortized  principal balance  and  all  accrued  but  unpaid
     interest came due on October 1, 1996.
     
     During  the  third quarter of 1996, GCC requested an additional  three
     month  extension  of  time  in which to  satisfy  the  loan  while  it
     continued to pursue alternate financing.  The General Partner  granted
     GCC  this  extension  in  consideration of GCC  making  an  additional
     payment  in the aggregate amount of $400,000 to reduce the outstanding
     principal balance of the loan.  In addition, GCC was required to  make
     monthly loan payments of $85,416 from October 1, 1996 through December
     1,  1996.   On  October  11,  1996, and November  8,  1996,  GCC  made
     additional  payments  of $200,000 each as required  by  the  extension
     agreement.   The entire unamortized principal balance and all  accrued
     but  unpaid interest came due on January 1, 1997.  On January 9, 1997,
     GCC  paid  the  entire outstanding principal balance and  accrued  but
     unpaid interest then due.
     
     Real  estate  loans are evaluated for collectibility  on  an  on-going
     basis.








                                    14

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

7. Investment in Joint Venture
   ---------------------------
     On  December 28, 1988, the Partnership acquired a 99.5% interest in JH
     Quince  Orchard  Partners (the "Affiliated Joint  Venture"),  a  joint
     venture  between  the  Partnership  and  John  Hancock  Realty  Income
     Fund-III Limited Partnership ("Income Fund-III").  The Partnership had
     an  initial  99.5% interest and Income Fund-III had  an  initial  0.5%
     interest in the Affiliated Joint Venture.  Pursuant to the partnership
     agreement  of  the Affiliated Joint Venture, Income Fund-III  had  the
     option,  exercisable  prior  to December 31,  1990,  to  increase  its
     investment  and  interest  in the Affiliated  Joint  Venture  to  50%.
     During  the  second  quarter of 1989, Income  Fund-III  exercised  its
     option  and  the  Partnership sold a 49.5% interest in the  Affiliated
     Joint  Venture  to Income Fund-III.  The Partnership has  held  a  50%
     interest  in the Affiliated Joint Venture since the second quarter  of
     1989.
     
     On  December 28, 1988, the Affiliated Joint Venture contributed 98% of
     the  invested  capital  of, and acquired a  75%  interest  in,  QOCC-1
     Associates, an existing partnership which owns and operates the Quince
     Orchard  Corporate Center, a three-story office building  and  related
     land   and  improvements  located  in  Gaithersburg,  Maryland.    The
     partnership   agreement  of  QOCC-1  Associates  provides   that   the
     Affiliated  Joint  Venture  shall  contribute  95%  of  any   required
     additional  capital contributions.  Of the cumulative  total  invested
     capital  in QOCC-1 Associates at September 30, 1997, 97.55%  has  been
     contributed  by  the Affiliated Joint Venture.  The  Affiliated  Joint
     Venture continues to hold a 75% interest in QOCC-1 Associates.

     Net  cash  flow from QOCC-1 Associates is distributed in the following
     order of priority:  first, to the payment of all debts and liabilities
     of QOCC-1 Associates and to fund reserves deemed reasonably necessary;
     second,  to  the  partners in proportion to their respective  invested
     capital  until  each  has received a 9% return  on  invested  capital;
     third,  the  balance, if any, to the partners in proportion  to  their
     interests.   Prior  to 1996, QOCC-1 Associates had  not  provided  the
     partners  with  a  return in excess of 9% on their  invested  capital.
     During  1996,  the  Affiliated  Joint Venture  received  a  return  on
     invested capital of approximately 12%.
     
     Income  and gains of QOCC-1 Associates, other than the gains allocated
     arising from a sale or other similar event with respect to the  Quince
     Orchard  Corporate  Center, are allocated in the  following  order  of
     priority:   i)  to  the  partners  who  are  entitled  to  receive   a
     distribution of net cash flow, pro rata in the same order and  amounts
     as  such  distributions are made and ii) the balance, if any,  to  the
     partners, pro rata in accordance with their interests.
     
     
     
                                       15
     
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

8. Deferred Expenses
   -----------------
     Deferred expenses consist of the following:
<TABLE>
<CAPTION>
                                                              Unamortized           Unamortized
                                                               Balance at            Balance at
          Description                                      September 30, 1997    December 31, 1996
          -----------                                        -------------       ------------------
              <S>                                                 <C>                   <C>
      $35,072 acquisition fee for 205 Newbury St.
      loan.  This amount is amortized over the
      term of the loan.                                              $1,895                $4,739

      $152,880 acquisition fee for investment in
      the Affiliated Joint Venture.  This amount
      is amortized over a period of 31.5 years.                     110,616               114,256

      $1,203,097 acquisition fees paid to the
      General Partner.  Prior to June 30, 1993, this
      amount was amortized over a period of 30 years.
      Subsequent to June 30, 1993, the unamortized
      balance is amortized over a period of 8.5 years.              515,329               606,269

      $143,923 of tenant improvements.  These amounts
      are amortized over the terms of the leases
      to which they relate.                                          36,471                46,828

      $506,737 of lease commissions.  These amounts
      are amortized over the terms of the leases
      to which they relate.                                         234,283               261,953
                                                                  ---------            ----------
                                                                   $898,594            $1,034,045
                                                                  =========            ==========
</TABLE>
9. Federal Income Taxes
   -------------------
     A  reconciliation  of  the net income reported in  the  Statements  of
     Operations to the net income reported for federal income tax  purposes
     is as follows:
       <TABLE>
       <CAPTION>
                                                                    Nine Months Ended September 30,
                                                                            1997           1996
                                                                           -----          -----
        <S>                                                                 <C>            <C>
        Net income per Statements of Operations                         $1,476,141     $1,893,010

     Add/(deduct):  Excess of book depreciation
                       over tax depreciation                                57,865         77,546
                    Excess of book amortization
                       over tax amortization                                58,907         77,410
                    Other income and expense                               (12,755)      (119,377)
                                                                        ----------     ----------
        Net income for federal income tax purposes                      $1,580,158     $1,928,589
                                                                        ==========     ==========
       </TABLE>
                                    16
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (Continued)
                               (Unaudited)

10.  Contingencies
     -------------
     In  February 1996, a putative class action complaint was filed in  the
     Superior Court in Essex County, New Jersey by a single investor in the
     Partnership.   The complaint named as defendants the Partnership,  the
     General Partner, certain other Affiliates of the General Partner,  two
     limited  partnerships  affiliated with the  Partnership,  and  certain
     unnamed  officers,  directors,  employees  and  agents  of  the  named
     defendants.   The plaintiff sought unspecified damages  stemming  from
     alleged misrepresentations and omissions in the marketing and offering
     materials associated with the Partnership and two limited partnerships
     affiliated  with  the  Partnership.  On  March  18,  1997,  the  court
     certified  a  class of investors who were original purchasers  in  the
     Partnership.
     
     The  Partnership provides indemnification to the General  Partner  and
     its  Affiliates for acts or omissions of the General Partner  in  good
     faith  on  behalf  of the Partnership, except for  acts  or  omissions
     constituting  fraud,  negligence, misconduct or  breach  of  fiduciary
     duty.   The General Partner believes that this indemnification applies
     to the class action complaint described above.
     
     The  Partnership has incurred approximately $206,000 in legal expenses
     in  connection with the class action lawsuit (see Part II, Item  1  of
     this  Report).  Of this amount, approximately $124,000 relates to  the
     Partnership's  own defense and approximately $82,000  relates  to  the
     indemnification  of the General Partner and its Affiliates  for  their
     defense.   These  expenses  are funded  from  the  operations  of  the
     Partnership.  At the present time, the General Partner cannot estimate
     the  aggregate amount of legal expenses and indemnification claims  to
     be   incurred   and  their  impact  on  the  Partnership's   financial
     statements,  taken  as  a whole.  Accordingly, no  provision  for  any
     liability  which  could  result from the  eventual  outcome  of  these
     matters has been made in the accompanying financial statements.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
                                    17
     
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations

General
-------
During  the offering period, from October 2, 1987 to January 2,  1989,  the
Partnership sold 2,601,552 Units representing gross proceeds (exclusive  of
the  John  Hancock Limited Partner's contribution, which was  used  to  pay
sales commissions) of $52,031,040.  The proceeds of the offering were  used
to  acquire  investments,  fund  reserves, and  pay  acquisition  fees  and
organizational and offering expenses.  These investments are described more
fully in Notes 5, 6 and 7 to the Financial Statements included in Item 1 of
this Report.

Forward-looking Statements
--------------------------
In  addition to historical information, certain statements contained herein
contain forward-looking statements within the meaning of Section 27A of the
Securities  Act  of  1933, as amended, and Section 21E  of  the  Securities
Exchange  Act of 1934, as amended.  Those statements appear in a number  of
places  in this Report and include statements regarding the intent,  belief
or expectations of the General Partner with respect to, among other things,
the prospective sale of Partnership properties, actions that would be taken
in  the event of lack of liquidity, unanticipated leasing costs, repair and
maintenance  expenses,  distributions  to  the  General  Partner   and   to
Investors,  the  possible effects of tenants vacating space at  Partnership
properties, the absorption of existing retail space in certain geographical
areas, and the impact of inflation.

Forward-looking  statements involve numerous known and  unknown  risks  and
uncertainties,  and  they  are not guarantees of future  performance.   The
following  factors, among others, could cause actual results or performance
of  the  Partnership  and  future events to differ  materially  from  those
expressed  or implied in the forward-looking statements:  general  economic
and  business  conditions;  any  and  all  general  risks  of  real  estate
ownership, including without limitation adverse changes in general economic
conditions  and adverse local conditions, the fluctuation of rental  income
from  properties, changes in property taxes, utility costs  or  maintenance
costs  and  insurance, fluctuations of real estate values, competition  for
tenants, uncertainties about whether real estate sales under contract  will
close;  the  ability of the Partnership to sell its properties;  and  other
factors  detailed from time to time in the filings with the Securities  and
Exchange Commission.

Readers  are  cautioned  not  to place undue  reliance  on  forward-looking
statements,  which reflect the General Partner's analysis only  as  of  the
date  hereof.   The  Partnership assumes no obligation to  update  forward-
looking  statements.  See also the Partnership's reports to be  filed  from
time  to time with the Securities and Exchange Commission pursuant  to  the
Securities Exchange Act of 1934, as amended.

                                       18

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Liquidity and Capital Resources
-------------------------------
At  September  30,  1997 the Partnership had $3,480,938 in  cash  and  cash
equivalents  and $100,951 in restricted cash.  The Partnership's  cash  and
cash  equivalents decreased by $5,189,052 from December 31, 1996  primarily
due to the distribution on February 14, 1997 of net sales proceeds from the
earlier sale of the Fulton Business Park property and the repayment of  the
General Camera Corporation's ("GCC") mortgage loan.

The  Partnership's  working  capital  reserve  has  a  current  balance  of
approximately  6%  of  the  Investors' Invested  Capital  (defined  in  the
Partnership  Agreement).  The General Partner anticipates that such  amount
should  be  sufficient  to  satisfy  the  Partnership's  general  liquidity
requirements.   The Partnership's liquidity would, however,  be  materially
adversely  affected if there were a significant reduction  in  revenues  or
significant  unanticipated operating costs (including but  not  limited  to
litigation expenses), unanticipated leasing costs or unanticipated  capital
expenditures.  If any or all of these events were to occur, to  the  extent
that  the working capital reserve would be insufficient to satisfy the cash
requirements  of  the Partnership, it is anticipated that additional  funds
would  be  obtained through a reduction of cash distributions to Investors,
bank loans, short-term loans from the General Partner or its Affiliates, or
the sale or financing of Partnership investments.

The  mortgage  loan to GCC as extended and made in the original  amount  of
$5,500,000 came due on January 1, 1997.  On January 9, 1997, GCC  paid  the
entire  outstanding principal balance and all accrued but  unpaid  interest
then due.  On February 14, 1997, the repayment proceeds were distributed to
the  Investors and the John Hancock Limited Partner, in accordance with the
terms of the Partnership Agreement.

The  Partnership  incurred  $34,444 of leasing costs  at  the  Park  Square
Shopping  Center property during the nine months ended September 30,  1997.
The  General  Partner  anticipates  that  the  Partnership  will  incur  an
aggregate of approximately $2,500 of additional leasing costs at  the  Park
Square  Shopping Center property during the remainder of 1997.  The current
balance  in  the working capital reserve should be sufficient to  pay  such
costs.







                                       19

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)
---------------------

Liquidity and Capital Resources (continued)
-------------------------------------------
The  Partnership incurred approximately $1,100 of non-recurring repair  and
maintenance expenses during the nine months ended September 30, 1997.   The
General Partner anticipates that the Partnership will incur additional non-
recurring  repair  and  maintenance expenses in  the  aggregate  amount  of
approximately  $13,000  at  the  Miami  International  Distribution  Center
property during the remainder of 1997.  These expenses will be funded  from
the operations of the Partnership's properties and are not expected to have
a significant impact on the Partnership's liquidity.

The  Partnership has incurred approximately $206,000 in legal  expenses  in
connection  with  the class action lawsuit (see Part II,  Item  1  of  this
Report).    Of   this  amount,  approximately  $124,000  relates   to   the
Partnership's  own  defense  and  approximately  $82,000  relates  to   the
indemnification  of  the  General Partner  and  its  Affiliates  for  their
defense.   At  the  present time, the General Partner cannot  estimate  the
aggregate  amount  of  legal  expenses and  indemnification  claims  to  be
incurred   and  their  impact  on  the  Partnership's  future   operations.
Liquidity would, however, be materially adversely affected by a significant
increase in such legal expenses and related indemnification costs.  If such
increases  were to occur, to the extent that cash from operations  and  the
working  capital  reserve  would  be  insufficient  to  satisfy  the   cash
requirements  of  the Partnership, it is anticipated that additional  funds
would  be  obtained through a reduction of cash distributions to Investors,
bank loans, short-term loans from the General Partner or its Affiliates, or
the sale or financing of Partnership investments.

Cash in the aggregate amount of $10,922,829 was distributed to the Partners
during  the  nine  months  ended  September  30,  1997.   Of  this  amount,
$2,128,542  was generated from Distributable Cash from Operations  (defined
in   the   Partnership  Agreement),  and  $8,794,287  was  generated   from
Distributable  Cash from Sales, Financings or Repayments  (defined  in  the
Partnership Agreement).  These amounts were distributed in accordance  with
the Partnership Agreement and were allocated as follows:

                                                        From Distributable
                               From Distributable        Cash From Sales
                                   Cash From              Financings, or
                                   Operations               Repayments
                                   ----------              -----------

Investors                          $2,107,257               $8,142,858
John Hancock Limited Partner                -                  651,429
General Partner                        21,285                        -
                                  -----------              -----------
Total                              $2,128,542               $8,794,287
                                  ===========              ===========

                                           20

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Liquidity and Capital Resources (continued)
-------------------------------------------
The  amount  distributed  to  the Investors from  Distributable  Cash  from
Operations during the nine months ended September 30, 1997 represents a  6%
annualized  return  on Investors' Invested Capital.  The  Partnership  will
make  a  distribution  from Distributable Cash from Operations  during  the
fourth  quarter  of 1997 comparable to those made during  the  first  three
quarters of 1997.

The following table summarizes the leasing activity and occupancy status at
the Partnership's remaining equity investments during the nine months ended
September  30,  1997  and scheduled leasing activity  for  each  investment
during the remainder of 1997:

                      Miami International   Park Square     Quince Orchard
                       Distribution Ctr.   Shopping Ctr.    Corporate Ctr.
                       -----------------   -------------    --------------

Square Footage                215,019          137,108             99,782

Occupancy January 1, 1997       87%              84%                100%
                               ====             ====                ====
New Leases                       0%               4%                 0%

Lease Renewals                   0%               0%                 0%

Leases Expired                   0%               1%                 0%

Occupancy September 30, 1997    87%              87%                100%
                               ====             ====                ====

Leases Scheduled to Expire,
   Balance of 1997               0%               1%                 0%
                               ====             ====                ====

Leases Scheduled to Commence,
   Balance of 1997               0%               1%                 0%
                               ====             ====                ====







                                           21

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Liquidity and Capital Resources (continued)
-------------------------------------------
A  former  tenant  at the Miami International Distribution Center  that  had
occupied approximately 70,000 square feet, or 33% of the property, had  been
delinquent in rental payments and expense reimbursements since July 1993 and
vacated  the  property  in  September  1993.   The  former  tenant's   lease
obligations expired in December 1994.  The General Partner brought an action
against  the  former  tenant  to obtain full collection  of  all  delinquent
amounts  and  other amounts due under the lease agreement in  the  aggregate
amount  of  approximately $550,000.  During January  1997,  the  Partnership
reached   a  settlement  agreement  with  the  former  tenant  whereby   the
Partnership  agreed  to  dismiss the action  in  exchange  for  the  sum  of
$114,000.   Of  the  settlement amount, the former  tenant   i)  received  a
$24,143  credit  against the settlement amount, which credit represents  the
former  tenant's security deposit held by the Partnership,  ii) was required
to  make  a  one-time payment of $50,000 to the Partnership,  and   iii)  is
required  to  make monthly payments in the amount of $2,000 through  October
1998  until the sum of $39,857 is paid to the Partnership.  As of  the  date
hereof, the former tenant is current with its required payments.

The  General Partner subsequently secured two replacement tenants  for  this
space  at MIDC.  However, one of these tenants, leasing approximately 28,000
square feet, or 13% of the property, and whose lease was scheduled to expire
in  September 2004, vacated its space and had been delinquent in its  rental
payments  and expense reimbursements due since November 1994.   The  General
Partner  filed  a  complaint  against  this  tenant  demanding  payment  for
delinquent  rental amounts as well as all future obligations due  under  the
lease agreement.  The Partnership received a final judgment in the amount of
approximately $2,010,000 on January 31, 1996.  Subsequent to receiving  this
judgment,  the  tenant's  owner  declared  personal  bankruptcy  in  a  U.S.
bankruptcy  court  in  Florida.  In March 1997, the Partnership  received  a
final  settlement of its claim from the bankruptcy court in  the  amount  of
$10,000.   This amount was received during the second quarter of 1997.   The
General Partner continues to seek a replacement tenant for this space.

The  Miami International Distribution Center is located in an area that  the
Miami  Airport Authority has targeted for future expansion of  the  airport.
During May 1996, the Miami Airport Authority made an offer to purchase  this
property at an amount in excess of its carrying value.  The General  Partner
continues  to negotiate with the Miami Airport Authority towards a  mutually
acceptable  sale  of  the  property.  It is  possible  that,  under  certain
circumstances,  the  Miami  Airport Authority  could  obtain  this  property
through  its powers of eminent domain, although at this time no  such  plans
have  been announced or otherwise communicated to the General Partner.   The
General  Partner  believes  that  the Miami Airport  Authority's  desire  to
acquire the Miami International Distribution Center has hampered its ability
to lease the available space at the property.

                                           22

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Liquidity and Capital Resources (continued)
-------------------------------------------
The  Brooklyn Park, Minnesota real estate market, including the Park Square
Shopping  Center,  has  experienced increasing vacancy  rates  as  well  as
competitive  pricing  for  available space in recent  years.   The  General
Partner  expects  market conditions in Brooklyn Park to remain  competitive
during  the remainder of 1997 and, therefore, no increase in market  rental
rates   is  anticipated.   The  General  Partner  will  continue  to  offer
aggressive rental packages in an effort to retain existing tenants as  well
as to secure new tenants for the vacant space at the property.

205  Newbury  Associates  remained current on  its  minimum  required  debt
service  payments as of September 30, 1997 and as of the date hereof.   The
General  Partner  has no reason to believe, based upon current  information
and  events,  that  the  minimum required debt service  payments  will  not
continue  to be met or that the outstanding principal balance of  the  loan
will  not be repaid.  However, should 205 Newbury Associates fail  to  make
the  minimum  required debt service payments, there would be  a  materially
adverse  effect on the carrying value of the mortgage loan.   In  addition,
should  there  be  an  unfavorable change in the financial  status  of  the
borrower, there could be a materially adverse effect on the carrying  value
of  the  mortgage loan.  If one or both of the above were to  occur,  there
would  be a materially adverse effect on the Partnership's liquidity.   The
General Partner will continue to monitor the operations of the property and
the financial condition of the borrower.

During  the  third  quarter of 1997, the General Partner had  the  property
securing   the  Partnership's  mortgage  loan  to  205  Newbury  Associates
independently  appraised.   Based upon the  appraiser's  investigation  and
analysis,  the  building's market value is estimated  to  be  approximately
$1,800,000  as of September 30, 1997.  The $1,700,000 principal balance  of
the mortgage loan was evaluated in comparison to the independent appraisal.
Based  upon  such  evaluation, the General Partner determined  that  it  is
likely  that the property will generate sufficient cash flow to enable  the
borrower to pay the minimum required monthly debt service payments and that
the  residual value of the property should enable the borrower to repay the
principal balance of the loan upon maturity.  Accordingly, no write-down in
value was required at September 30, 1997.

                                           23

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Liquidity and Capital Resources (continued)
-------------------------------------------
During  the  third  quarter of 1997, the General  Partner  had  the  Quince
Orchard Corporate Center property independently appraised.  Based upon  the
appraiser's  investigation  and analysis, the property's  market  value  is
estimated to be approximately $14,600,000 as of September 30, 1997 and  the
value  of  the Partnership's investment in the Affiliated Joint Venture  is
estimated  to  be  approximately $7,125,000.  The  carrying  value  of  the
Partnership's   Affiliated  Joint  Venture  investment   of   approximately
$7,402,000  was evaluated in comparison to the property's estimated  future
undiscounted  cash  flows  and the independent appraisal.   Based  on  such
evaluation, the General Partner determined that the Partnership's share  of
the  property's  estimated future undiscounted cash flows are  expected  to
exceed  its  carrying value and, therefore, a write-down in value  was  not
required at September 30, 1997.  The Partnership's cumulative investment in
the Affiliated Joint Venture is approximately $8,915,000.

The   General  Partner  evaluated  the  carrying  value  of  each  of   the
Partnership's  properties as of December 31, 1996 by  comparing  each  such
carrying value to the related property's future undiscounted cash flows and
the  then most recent internal appraisal in order to determine whether  any
permanent  impairment in values existed.  Based upon such evaluations,  the
General  Partner determined that no permanent impairment in values  existed
and, therefore, no write-downs were recorded.

The  General  Partner will continue to conduct property  valuations,  using
internal  or  independent  appraisals, in  order  to  determine  whether  a
permanent   impairment  in  value  exists  on  any  of  the   Partnership's
properties.
















                                           24

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Results of Operations
---------------------
Net income for the nine months ended September 30, 1997 was $1,476,141,  as
compared  to  net income of $1,893,011 for the same period in  1996.   This
decrease  is  primarily due to the repayment of the GCC  mortgage  loan  in
January  1997 and the sale of the Fulton Business Park property in December
1996.   Excluding the net income attributable to the GCC mortgage loan  and
the  Fulton  Business Park property, net income increased slightly  between
periods  primarily due to the collection of past due rents from two  former
tenants at the Miami International Distribution Center.

Average occupancy for the Partnership's equity real estate investments  was
as follows:

                                             Nine Months Ended September 30,
                                                     1997           1996
                                                     ----           ----

       Miami International Distribution Center        87%            87%
       Park Square Shopping Center                    87%            85%
       Quince Orchard Corporate Center
         Affiliated Joint Venture)                   100%           100%

Rental  income  for the nine months ended September 30, 1997  decreased  by
$266,435, or 14%, as compared to the same period in 1996.  This decrease is
primarily  due  to  the sale of the Fulton Business  Park.   Excluding  the
rental  income  generated  by  the  Fulton  Business  Park,  rental  income
increased slightly between periods.  Rental income increased by 9%  at  the
Miami International Distribution Center primarily due to the collection  of
past  due  rent from two former tenants at the property.  Rental income  at
the Park Square property was consistent between periods.

Interest  income for the nine months ended September 30, 1997 decreased  by
$344,356,  or  53%, as compared to the same period in 1996.  This  decrease
was  primarily due to a decline in the interest earned on the GCC  mortgage
loan  due to its repayment on January 9, 1997.  This decrease was partially
offset  by the interest earned on the net sales proceeds received from  the
sale  of  the  Fulton  Business Park property and  the  proceeds  from  the
repayment  of  the  GCC  mortgage loan.  The Partnership  distributed  such
amounts in February 1997.

Depreciation expense for the nine months ended September 30, 1997 decreased
by $115,422, or 25%, as compared to the same period 1996.  This decrease is
due to the sale of the Fulton Business Park.

                                       25

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Results of Operations (continued)
---------------------------------
The  Partnership's share of property operating expenses for the nine months
ended  September 30, 1997 decreased by $92,258, or 25%, as compared to  the
same  period  in 1996.  This decrease is primarily due to the sale  of  the
Fulton  Business  Park.   Excluding  the Partnership's  share  of  property
operating   expenses  attributable  to  the  Fulton  Business   Park,   the
Partnership's share of property operating expenses decreased by 13% between
periods due to decreases in the Partnership's share of such expenses at the
Miami  International  Distribution Center and Park Square  Shopping  Center
properties.   The  Partnership's  share  of  property  operating   expenses
decreased  between  periods at the Miami International Distribution  Center
primarily  due  to a decrease in legal costs related to the  collection  of
past  due rent from two former tenants at the property and to certain  non-
recurring  repairs  incurred during the period in 1996.  The  Partnership's
share  of property operating expenses decreased at the Park Square Shopping
Center  property  primarily due to lower real estate  taxes.   Real  estate
taxes decreased between periods primarily due to a successful appeal of the
property's  assessed value which resulted in a rebate  of  a  prior  year's
taxes  as  well as a reduction in current year's taxes.  This decrease  was
partially  offset by an increase in snow removal costs between periods  and
certain  non-recurring repairs incurred at the property during the  current
period.

General and administrative expenses for the nine months ended September 30,
1997 increased by $45,415, or 25%, primarily due to legal fees incurred  by
the Partnership in connection with the class action complaint (see Part II,
Item   1  of  this  Report).   Excluding  such  legal  fees,  general   and
administrative expenses decreased by approximately 20% primarily due  to  a
decrease  in  the  time  required of the General Partner  in  managing  the
activities  of  this  Partnership resulting from the  sale  of  the  Fulton
Business  Park and the repayment of the General Camera Corporation mortgage
loan.

Amortization  of deferred expenses for the nine months ended September  30,
1997  decreased by $45,445, or 21%, as compared to the same period in 1996.
This decrease is primarily due to the sale of the Fulton Business Park  and
the  repayment of the GCC mortgage loan and the absence of amortization  of
their related deferred expenses.

The  General Partner believes that inflation has had no significant  impact
on  the Partnership's operations during the nine months ended September 30,
1997,  and the General Partner anticipates that inflation will not  have  a
significant impact during the remainder of 1997.

                                       26

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)

Cash Flow
---------
The  following table provides the calculations of Cash from Operations  and
Distributable Cash from Operations which are calculated in accordance  with
Section 17 of the Partnership Agreement:
<TABLE>
<CAPTION>

                                                               Nine Months Ended September 30,
                                                                   1997                 1996
                                                                  -----                -----
<S>                                                                <C>                  <C>
Net cash provided by operating activities (a)                    $2,222,860          $2,956,719
Net change in operating assets and liabilities (a)                 (48,815)           (191,900)
                                                                 ----------          ----------
Net cash provided by operations (a)                               2,174,045           2,764,819
Increase in working capital reserves                              (150,616)           (478,607)
                                                                 ----------          ----------
Cash from operations (b)                                          2,023,429           2,286,212
Decrease in working capital reserves                                      -                   -
                                                                 ----------          ----------
Distributable cash from operations (b)                           $2,023,429          $2,286,212
                                                                 ==========          ==========

Allocation to General Partner                                       $20,234             $22,862
Allocation to Investors                                           2,003,195           2,263,350
Allocation to John Hancock Limited Partner                                -                   -
                                                                 ----------          ----------
                                                                 $2,023,429          $2,286,212
                                                                 ==========          ==========
</TABLE>

   (a)   Net  cash provided by operating activities, net change  in
          operating  assets and liabilities, and net cash  provided
          by operations are as calculated in the Statements of Cash
          Flows included in Item 1 of this Report.
   
   (b)   As  defined  in  the Partnership Agreement.  Distributable
          Cash  from  Operations should not  be  considered  as  an
          alternative  to  net  income (i.e. not  an  indicator  of
          performance) or to reflect cash flows or availability  of
          discretionary funds.
   
During the fourth quarter of 1997, the Partnership will make a distribution
of  Distributable Cash from Operations to the Investors in  the  amount  of
$650,388.   This  amount represents a 6% annualized  return  on  Investor's
remaining Invested Capital.

The source of future cash distributions is dependent upon cash generated by
the  Partnership's properties and the use of working capital reserves.  The
General  Partner currently anticipates that the Partnership's Distributable
Cash  from  Operations during the fourth quarter of 1997 will be comparable
to that generated during each of the first three quarters of 1997.

                                       27

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                       PART II:  OTHER INFORMATION

Item 1.   Legal Proceedings
      
      In  February 1996, a putative class action complaint was filed in the
      Superior  Court in Essex County, New Jersey by a single  investor  in
      the  Partnership.  The complaint named as defendants the Partnership,
      the   General  Partner,  certain  other  Affiliates  of  the  General
      Partner,  and  certain  unnamed officers,  directors,  employees  and
      agents of the named defendants.
      
      The  plaintiff  sought  unspecified  damages  stemming  from  alleged
      misrepresentations  and  omissions  in  the  marketing  and  offering
      materials   associated   with  the  Partnership   and   two   limited
      partnerships   affiliated  with  the  Partnership.    The   complaint
      alleged,  among  other things, that the marketing materials  for  the
      Partnership  and the affiliated limited partnerships did not  contain
      adequate risk disclosures.
      
      On  March 18, 1997, the court certified a class of investors who were
      original  purchasers  in  the Partnership.  The  certification  order
      should  not be construed as suggesting that any member of  the  class
      is entitled to recover, or will recover, any amount in the action.
      
      The  General  Partner  believes the allegations are  totally  without
      merit and will continue to vigorously contest the action.
      
      In  September 1997 a complaint for damages was filed in the  Superior
      Court of the State of California for the County of Los Angeles  by  a
      plaintiff who allegedly had been granted a special power of  attorney
      by  a  single  Investor in the Partnership.  The complaint  named  as
      defendants  the  General Partner and certain  unnamed  agents  and/or
      employees of one or more of the other defendants.
      
      The  plaintiff  sought  unspecified  damages  stemming  from  alleged
      breach  of  contract  and breach of fiduciary  duty.   The  complaint
      alleged,  among other things, that the plaintiff, acting pursuant  to
      a  special  power  of attorney granted to it by an  Investor  in  the
      Partnership, requested a list of Investors from the General  Partner,
      allegedly with the intention of making a tender offer to purchase  up
      to  4.9% of the Units of the Partnership at a purchase price of $7.50
      per  Unit, and that the General Partner failed and refused to provide
      the  plaintiff  with such list.  The complaint alleged  further  that
      the  plaintiff, a limited partner in a limited partnership affiliated
      with  the  Partnership, also requested a list of limited partners  in
      the  affiliated limited partnership with the intention  of  making  a
      tender offer for up to 4.9% of the limited partnership units of  that
      affiliated  limited  partnership, and that the General  Partner  also
      failed and refused to provide the plaintiff with such list.
      
      There  can be no assurances given as to the timing, costs or  outcome
      of this legal proceeding.
      
      There  are  no other material pending legal proceedings,  other  than
      ordinary  routine  litigation  incidental  to  the  business  of  the
      Partnership, to which the Partnership is a party or to which  any  of
      its properties is subject.
      
                                      28
      
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)
      
Item 2.   Changes in Securities

      There  were  no  changes in securities during the  third  quarter  of
      1997.

Item 3.   Defaults upon Senior Securities

      There  were  no  defaults  upon senior securities  during  the  third
      quarter of 1997.

Item 4.   Submission of Matters to a Vote of Security Holders

      There were no matters submitted to a vote of security holders of  the
      Partnership during the third quarter of 1997.

Item 5.   Other information


Item 6.   Exhibits and Reports on form 8-K

      (a)   There are no exhibits to this Report
      (b)  There were no Reports on Form 8-K filed during the third quarter of
            1997.




























                                       29

<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)


                                Signatures
                               -----------


Pursuant  to the requirements of the Securities Exchange Act of  1934,  the
Registrant  has duly caused this Report to be signed on its behalf  by  the
undersigned, thereunto duly authorized, on the 14th day of November, 1997.

                               John Hancock Realty Income Fund-II
                               Limited Partnership


                               By:  John Hancock Realty Equities, Inc.,
                                    General Partner



                                   By:  WILLIAM M. FITZGERALD
                                        --------------------------------
                                        William M. Fitzgerald, President



                                   By:  RICHARD E. FRANK
                                        --------------------------------
                                        Richard E. Frank, Treasurer
                                        (Chief Accounting Officer)

























                                       30