Florrie Tang, who bought an apartment in a Shanghai suburb in June, said she had been searching for a place since March and felt that prices had fallen close to the bottom of the market.

WSJ: China Housing Prices Rise After 9 Months of Decline

The 390-room, four-star hotel -- which opened in May 2011, is located in the booming suburb of Kangqiao, which is some 22 kilometers southeast from Shanghai downtown and 30 kilometers west of Shanghai Pudong International Airport.

CNN: Could this be the scariest hotel swimming pool ever?

Speaking at a Friday news conference in Shanghai, Shao Linchu, a deputy director at the Shanghai Agricultural Commission, said local authorities had slaughtered more than 20, 000 birds at a market in the suburb of Songjiang on Thursday night, and were investigating the origin of infected pigeons discovered there.

WSJ: Concerns Grow About New Avian-Flu Strain