Chinese real estate firms are cutting property prices and reducing the floor area of new development in an effort to tide over the worst property slump in a decade.

Vanke, the country's largest real estate firm, has launched a promotional initiative in Shanghai allowing prospective property buyers to make the initial down payment in two tranches. Prospective buyers can pay 10 percent of the total cost initially and the balance 10 percent before Feb 28.

The step comes close on the heels of Vanke announcing four other measures to stimulate sales, including a 1 percent reduction of the original property price.