Chinese developers increase promotions for projects

[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 …