'Buy one floor, get one free': China's real estate slump deepens

Cooling of key growth engine brings risks of debt overhang into focus

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An advertisement at a condominium project in the Tongling suburbs reads: "buy one floor, get one free." (Photo by Noriyuki Doi)

NORIYUKI DOI, Nikkei staff writer

SHANGHAI -- Half-built or seemingly abandoned housing projects are a common sight in Tongling, a city in eastern China's Anhui province.

"Buy one floor, get one free," reads an advertisement at one site under development in the suburbs. But even with the generous offer, the 1.45 million yuan ($202,000) price tag was still too high for most people, said a local resident, explaining that monthly salaries in the area averaged around 3,000 to 4,000 yuan.

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