Police said the British shell from World War II, weighing 80 pounds (36 kg) and two feet (60 cm)long, was found at Lugard Road on The Peak.
The Peak is home to the city's most expensive property and is also a tourist hotspot because of its stunning views of Victoria Harbour.
Police said the shell was dealt with but did not elaborate.
A member of staff at the nearby Peak Galleria shopping mall said it had been detonated in a controlled explosion.
Last year hundreds of people were evacuated when a British shell was found at a construction site near residential and commercial buildings.