China's January home prices rise even as top cities post decline

Beijing

CHINA'S new home prices grew in January although major cities saw early signs of softening, as the government continued its efforts to rein in speculative demand to fend off bubble risk.

The acceleration in prices across the nation suggests moves by provincial governments to support first-time buyers and upgraders by relaxing some purchase restrictions may be further fanning price gains in a market where fear of missing out is strong and mortgage fraud is rampant.

Average new home prices in China's 70 major cities rose 5 per cent in January from a year earlier and 0.3 per cent month on month, according to Reuters calculations based on the data from the stat…