China new-home prices surge at fastest pace since 2011

Beijing

PRICES of new homes in China grew last year at the fastest rate since 2011, but moderated enough in December to calm fears of a speculative bubble bursting with disastrous economic consequences. The price moderation will come as a relief to China's leaders as they wrestle with economic targets for 2017.

Sources have told Reuters that Beijing is prepared to accept a more modest growth target of 6.5 per cent this year as leaders tackle a mountain of debt built up over years of heavy official borrowing to fund stimulus campaigns.

China depended heavily on the surging real estate market and government stimulus to drive…