[HONG KONG] Chinese property developers are stepping up the use of sales promotions for some suburban housing projects, an early sign that a slowdown in property prices that spooked investors this week may be spreading.

In the big cities, demand remains robust and the chances of a slump in prices are slim, according to a Reuters poll. But prices are falling in some smaller centres, causing jitters among investors since the property sector drives a significant portion of the world's second biggest economy.

Developers are offering price promotions such as free car park spaces and renovation options that translate into discounts of 5-10 per cent even in developments on the edge of the capital, Beijing, according to real estate firm Knight Frank. "In some areas where sales are not good, developers are offering discounting or more promotions, even in suburban areas an hour away from Beijing city," Thomas Lam, Knight Frank's head of research & consultancy for Greater China, told Reuters.