China's home prices remained buoyant in December as big cities rebounded, a sign that Beijing's efforts to support its slowing economy may be putting a floor on the real estate market. Investors have been closely watching China's property markets for further signs of cooling after tough curbs were put in place to rein in sky-high prices. A sharp slowdown in the key sector could prompt policymakers to turn to more forceful economic stimulus despite risks of a housing bubble.

Average new home prices in China's 70 major cities grew at a slightly slower pace of 0.8 percent in December, according to Reuters calculations from National Bureau of Statistics (NBS) data on Wednesday. November prices grew 0.9 pct on month.

That marks the 44th straight month of price increases, despite government measures designed to rein in a real estate boom that has spilled over from megacities to the hinterland. Most of the 70 cities surveyed by the NBS still reported a monthly price increase for new homes in December. However, in a sign of weakening market strength, the number was down to 59 from 63 in November.

The sector's solid growth could cushion the impact of a vigorous multi-year government crackdown on debt and escalating trade tensions with the United States, although some analysts say bubble risks are rising as prices continue to climb.

From a year earlier, new home prices in December rose 9.7 percent, accelerating from November's pace and almost doubling from a 5.4 percent rise in December 2017.

Copyright Reuters, 2019