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Prices of new homes in China are now expected to climb 3% this year after a slew of policy measures to support the country's beleaguered property market, up from earlier expectations for prices to be flat, a Reuters poll showed. Defaults on debt payments by many developers in China's cash-squeezed and highly indebted property sector have sparked fears of a broader financial crisis, weighed on consumer confidence and hindered economic growth. Authorities, particularly those in major cities, have embarked on a string of steps to bolster demand, including allowing smaller down payments, easing curbs on home buying such as the number of homes that can be bought, lowering borrowing costs and encouraging the extension of loans.

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