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   June 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 filling 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 June 30, 1997 and
                December 31, 1996                                   3
                
                Statements of Operations for the Three and Six
                Months Ended June 30, 1997 and 1996                 4
                
                Statements of Partners' Equity for the
                Six Months Ended June 30, 1997 and
                for the Year Ended December 31, 1996                5
                
                Statements of Cash Flows for the Six
                Months Ended June 30, 1997 and 1996                 6
                
                Notes to Financial Statements                    7-18
                
  Item 2   -    Management's Discussion and Analysis of
                Financial Condition and Results of Operations   19-27


PART II:   OTHER INFORMATION                                        28

























                                    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
                                                   June 30,     December 31,
                                                     1997           1996
                                                    -----          -----

Cash and cash equivalents                       $3,255,041     $8,669,990
Restricted cash                                     99,552        111,612
Other assets                                        88,139        112,762

Deferred expenses, net of accumulated
  amortization of $1,086,975 in 1997
  and $1,086,688 in 1996                           946,817      1,034,045

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

Investment in joint venture                      7,509,102      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               4,112,080      3,875,115
                                                ----------     ----------
                                                15,146,128     15,383,093
                                                ----------     ----------
     Total assets                              $28,744,779    $38,131,131
                                               ===========    ===========

                    LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued expenses             $205,337       $282,825
Accounts payable to affiliates                     106,584         88,991
                                                  --------       --------
     Total liabilities                             311,921        371,816

Partners' equity/(deficit):
  General Partner's deficit                      (171,378)      (166,057)
  Limited Partners' equity                      28,604,236     37,925,372
                                                ----------     ----------
     Total partners' equity                     28,432,858     37,759,315
                                                ----------     ----------

     Total liabilities and partners' equity    $28,744,779    $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           Six Months Ended
                                                     June 30,                    June 30,
                                                 1997        1996          1997            1996
                                                -----       -----         -----            ----
<S>                                              <C>         <C>           <C>             <C>
Income:
  Rental income                                $517,450    $634,393     $1,058,824     $1,243,268
  Income from joint venture                     186,173     201,398        374,710        382,914
  Interest income                                82,375     218,880        226,736        438,442
                                               --------    --------      ---------      ---------

     Total income                               785,998   1,054,671      1,660,270      2,064,624

Expenses:
  Depreciation                                  118,483     156,955        236,965        313,912
  Property operating expenses                   100,759     111,721        192,776        237,609
  General and administrative expenses            65,298      62,735        177,361        117,201
  Amortization of deferred expenses              59,195      74,306        113,755        146,462
                                               --------    --------       --------      ---------

     Total expenses                             343,735     405,717        720,857        815,184
                                               --------    --------       --------      ---------

     Net income                                $442,263    $648,954       $939,413     $1,249,440
                                               ========    ========       ========      =========

Allocation of net income:

  General Partner                                $4,423      $6,489         $9,394        $12,494
  John Hancock Limited Partner                        -           -              -              -
  Investors                                     437,840     642,465        930,019      1,236,946
                                               --------    --------       --------      ---------
                                               $442,263    $648,954       $939,413     $1,249,440
                                               ========    ========       ========      =========


Net income per Unit                              $0.17        $0.25          $0.36          $0.48
                                                  =====       =====         =====          =====
</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)

                    Six Months Ended June 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                               (14,715)     (10,251,155)   (10,265,870)

Add:    Net income                                          9,394          930,019        939,413
                                                       ----------      -----------     ----------

Partner's equity/(deficit) at June 30, 1997
    (2,601,552 Units outstanding)                      ($171,378)      $28,604,236    $28,432,858
                                                         ========       ==========    ===========

</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)

                                                       Six Months Ended
                                                           June 30,
                                                     1997            1996
                                                     ----            ----
Operating activities:
  Net income                                        $939,413     $1,249,440

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

     Depreciation                                    236,965        313,912
     Amortization of deferred expenses               113,755        146,462
     Cash distributions over equity in
      income from joint venture                       65,166        112,153
                                                   ---------      ---------
                                                   1,355,299      1,821,967

  Changes in operating assets and liabilities:
     Decrease in restricted cash                      12,060          5,602
     Decrease/(increase) in other assets              24,623       (34,499)
     (Decrease)/increase in accounts payable
      and accrued expenses                          (77,488)         70,102
     Increase in accounts payable to
      affiliates                                      17,593          9,101
                                                   ---------      ---------
  Net cash provided by operating activities        1,332,087      1,872,273
      activities

Investing activities:
  Principal payments on real estate loans          3,545,361        251,049
  Increase in deferred expenses                     (26,527)       (22,432)
                                                   ---------      ---------
  Net cash provided by investing                   3,518,834        228,617
      activities
Financing activities:
  Cash distributed to Partners                  (10,265,870)    (1,392,750)
                                                   ---------      ---------

     Net cash used in financing activities      (10,265,870)    (1,392,750)
                                                   ---------      ---------
     Net (decrease)/increase in cash and cash
      equivalents                                (5,414,949)        708,140

     Cash and cash equivalents at beginning
      of year                                      8,669,990      3,520,394
                                                   ---------      ---------
     Cash and cash equivalents at end
      of period                                   $3,255,041     $4,228,534
                                                   =========      =========

                    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 June 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 4,576 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 six month period ended June 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 Investors 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 six  months  ended
     June  30,  1997  and  1996  and to which the General  Partner  or  its
     affiliates  are  entitled to reimbursement from the  Partnership  were
     $145,916  and $85,920, respectively.  These expenses are  included  in
     expenses on 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  six  months  ended June 30, 1997 and 1996 were  $38,173  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 June 30, 1997, the Partnership has accrued  a  total
     of  $79,648 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.
















                                       12
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)
5. Investment in Property
   ----------------------
     Investment  in  property at cost consists of managed, fully-operating,
     commercial real estate as follows:
<TABLE>
<CAPTION>
                                                            June 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>

     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  a
     specified portion of the net sales price or mutually agreed upon  fair
     market value of the property 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 six months ended June 30, 1997  and  the  year
     ended  December 31, 1996, the Partnership received contingent interest
     payments, the amount of which is not material.
     
                                       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)
   -----------------------------
     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%.
     
     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 June  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
   -----------------
     <TABLE>
     <CAPTION>
     Deferred expenses consist of the following:
                                                              Unamortized           Unamortized
                                                               Balance at            Balance at
          Description                                        June 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.                                     $2,843                $4,739

      $152,880 acquisition fee for investment in
      the Affiliated Joint Venture.  This amount
      is amortized over a period of 31.5 years                      111,829               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.              545,642               606,269

      $141,606 of tenant improvements.  These amounts
      are amortized over the terms of the leases
      to which they relate.                                          40,258                46,828

      $501,137 of lease commissions.  These amounts
      are amortized over the terms of the leases
      to which they relate.                                         246,245               261,953
                                                                  ---------             ---------
                                                                   $946,817            $1,034,045
                                                                  =========            ==========
</TABLE>















                                       16

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

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

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>

                                                                       Six Months Ended June 30,
                                                                            1997           1996
                                                                           -----          -----
        <S>                                                                 <C>            <C>
        Net income per Statements of Operations                           $939,413     $1,249,440


        Add/(deduct):  Excess of book depreciation
                         over tax depreciation                              38,576         51,697
                       Excess of book amortization
                         over tax amortization                              39,225         51,606
                       Other income and expense                            (8,504)       (79,585)
                                                                           -------        -------

        Net income for federal income tax purposes                      $1,008,710     $1,273,158
                                                                        ==========     ==========

       </TABLE>

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.
     
     
     
                                       17
<PAGE>
          JOHN HANCOCK REALTY INCOME FUND-II LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

10.  Contingencies (continued)
     -------------------------
     The  Partnership has incurred approximately $200,000 in legal expenses
     in  connection with the class action lawsuit (see Part II, Item  1  of
     this  Report).  Of this amount, approximately $120,000 relates to  the
     Partnership's  own defense and approximately $80,000  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.





































                                       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

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, anticipated 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.]



                                       19

<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  June  30,  1997  the  Partnership  had  $3,255,041  in  cash  and  cash
equivalents, $99,552 in restricted cash.  The Partnership's cash  and  cash
equivalents decreased by $5,414,949 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  has a working capital reserve with a current  balance  of
approximately  5.6%  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  $26,527 of leasing costs  at  the  Park  Square
Shopping  Center property during the six months ended June 30,  1997.   The
General Partner anticipates that the Partnership will incur an aggregate of
approximately  $104,000  of additional leasing costs  at  the  Park  Square
Shopping  Center  and  Miami International Distribution  Center  properties
during  the remainder of 1997.  The current balance in the working  capital
reserve should be sufficient to pay such costs.

The  Partnership incurred approximately $1,100 of non-recurring repair  and
maintenance  expenses  during the six months  ended  June  30,  1997.   The
General Partner anticipates that the Partnership will incur additional non-
recurring  repair  and  maintenance expenses in  the  aggregate  amount  of
approximately  $25,000  at  the  Park  Square  Shopping  Center  and  Miami
International Distribution Center properties 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.

                                       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  Partnership has incurred approximately $200,000 in legal  expenses  in
connection  with  the class action lawsuit (see Part II,  Item  1  of  this
Report).    Of   this  amount,  approximately  $120,000  relates   to   the
Partnership's  own  defense  and  approximately  $80,000  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 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 $10,265,870 was distributed to the Partners
during the six months ended June 30, 1997.  Of this amount, $1,471,583  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                          $1,456,868               $8,142,858
John Hancock Limited Partner                -                  652,429
General Partner                        14,715                        -
                                  -----------               ----------
     Total                         $1,471,583               $8,794,287
                                   ==========               ==========

The  amount  distributed  to  the Investors from  Distributable  Cash  from
Operations  during  the  six months ended June 30, 1997  represented  a  6%
annualized  return  on Investors' Invested Capital.   The  General  Partner
anticipates that the Partnership will be able to make comparable  quarterly
cash  distributions  from  Distributable Cash from  Operations  during  the
remainder of 1997.




                                        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)
------------------------------------------
The following table summarizes the leasing activity and occupancy status at
the  Partnership's remaining equity investments during the six months ended
June 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 June 30, 1997           87%               87%             100%
                                 ====              ====             ====

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

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

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 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.

                                       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  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
$10,000  from  the bankruptcy court as final settlement of the Partnership's
claim.   This amount was ordered to be paid as follows:  i) $5,000 upon  the
bankruptcy court approving the settlement and  ii) $5,000 thirty days  after
the  approval  of  the settlement.  The Partnership has  received  all  such
settlement  amounts.  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.

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.








                                       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)
------------------------------------------
205  Newbury  Associates  remained current on  its  minimum  required  debt
service  payments  as  of June 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.

The   General  Partner  evaluated  the  carrying  value  of  each  of   the
Partnership's  properties and its joint venture investment 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.
In  addition,  the  General Partner evaluated the status  of  its  mortgage
investments  and  their ultimate collectibility as of  December  31,  1996.
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.

Results of Operations
---------------------
Net income for the six months ended June 30, 1997 was $939,413, as compared
to  net income of $1,249,440 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 was consistent between periods

Average occupancy for the Partnership's equity real estate investments  was
as follows:
                                                Six Months Ended June 30,
                                                     1997           1996
                                                     ----           ----
       Miami International Distribution Center        87%            87%
       Park Square Shopping Center                    87%            86%
       Quince Orchard Corporate Center
         (Affiliated Joint Venture)                  100%           100%

                                       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 (continued)
---------------------
Rental income for the six months ended June 30, 1997 decreased by $184,444,
or 15%, 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 12% at the Miami International
Distribution Center primarily due to the collection of past due rent from a
former  tenant at the property.  This increase was partially  offset  by  a
decrease  in rental income at the Park Square property primarily due  to  a
decrease  in  percentage  rent collected from  the  anchor  tenant  at  the
property.

Interest  income  for  the  six months ended June  30,  1997  decreased  by
$211,706,  or  48%, 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 six months ended June 30, 1997  decreased  by
$76,947, or 25%, as compared to the same period 1996.  This decrease is due
to the sale of the Fulton Business Park.

The  Partnership's share of property operating expenses for the six  months
ended  June 30, 1997 decreased by $44,833, or 19%, 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 share of
property   operating  expenses  decreased  by  9%  between  periods.    The
Partnership's   share  of  property  operating  expenses   at   the   Miami
International Distribution Center decreased between periods.  This decrease
is  primarily due to a decrease between periods in legal costs  related  to
the  collection  of  past  due rents from certain  former  tenants  at  the
property.   The Partnership's share of property operating expenses  at  the
Park Square property was consistent between periods.












                                       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)
---------------------
General  and  administrative expenses for the quarter ended June  30,  1997
increased by $60,160, or 51%, 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 were consistent between periods.  At  the  present
time,  the  General Partner cannot estimate the aggregate  legal  fees  and
indemnification  claims to be incurred with respect  to  the  class  action
lawsuit   and   their  impact  on  the  Partnership's  future   operations.
Operations   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 properties.

Amortization  of deferred expenses for the six months ended June  30,  1997
decreased by $32,707, or 22%, 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 six months ended June 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>
                                                                  Six Months Ended June 30,
                                                                   1997                 1996
                                                                  -----                -----
<S>                                                                <C>                  <C>
Net cash provided by operating activities (a)                    $1,332,087          $1,872,273
Net change in operating assets and liabilities (a)                   23,212            (50,306)
                                                                 ----------          ----------
Net cash provided by operations (a)                               1,355,299           1,821,967
Increase in working capital reserves                                      -           (297,826)
                                                                 ----------          ----------
Cash from operations (b)                                          1,355,299           1,524,141
Decrease in working capital reserves                                 11,061                   -
                                                                 ----------          ----------
Distributable cash from operations (b)                           $1,366,360          $1,524,141
                                                                 ==========          ==========

Allocation to General Partner                                       $13,553             $15,241
Allocation to Investors                                           1,352,807           1,508,900
Allocation to John Hancock Limited Partner                                -                   -
                                                                 ----------          ----------
                                                                 $1,366,360          $1,524,141
                                                                 ==========          ==========
</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 third 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  Investors
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 each of the remaining two quarters of 1997 will
be comparable to that generated during the second quarter 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.
      
      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.
      
Item 2.   Changes in Securities

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

Item 3.   Defaults upon Senior Securities

      There  were  no  defaults upon senior securities  during  the  second
      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 second 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 second quarter
           of 1997.
                                      28
<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 August, 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)

























                                       29