Some Shanghai property developers are offering buyers with price discounts or preferential treatment to promote their residential projects.
The developers of a few new residential projects, especially those in the city's suburban areas, give discounts or even repay part of the purchase price as a sales-promoting gimmick.
The newly built "Island Apartment" project in Minhang District features a money-back system to boost sales in the development.
After putting a down payment of 10,000 yuan (US$1,205), home buyers can get back 40,000 yuan if they choose to purchase one two-bedroom apartment or 60,000 yuan if they buy a three-bedroom flat.
The project's average housing price is 5,300 yuan per square meter, according to the developer.
While cutting prices is the method to promote sales of low-end apartments,  some high-end flats are also sold cheaper if buyers pay the full purchase price.
"They offered me a 1 percent discount on condition that I pay the full purchase," said a customer surnamed Liu, who bought an apartment in Xiangmei Garden in Pudong New Area.
Prices in the development range from 11,000 yuan per square meter to 13,000 yuan per square meter.
"As far as I know, quite a number of new apartments on sale in the city's housing market are sold at a discount," Liu added.
In some residential projects, mobile phones, personal computers and other gifts are given to buyers if they purchase two or more apartments.
"Developers aim to collect back their investment as quickly as possible with such preferential policies," said Chen Sheng, chief analyst with the Shanghai Real Estate Index Office.
"Compared with selling prices, the relatively low costs of construction and relocation will still enable developers to boast a considerable profit margin even if they give customers discounts."
Average apartment prices in Shanghai hit 5,135 yuan per square meter during the first half of this year, a year-on-year jump of 19.8 percent, said the Shanghai Real Estate Index Office.