Housing prices in several second-tier markets are also worth noticing. The cities also have millions of residents and home prices there are rising fast.

In Nanjing, the capital of Jiangsu Province, housing prices there have risen over the past 12 straight months. Land prices have reached new highs as well. Seven pieces of land saw record highs in auctions in January and March.

Coastal city of Xiamen in southwest China is seeing home prices increase sharply in 2016 after years of sluggishness. Home prices there rose 10 percent in February. The average home price in Xiamen is now over 20,000 yuan per square meter.

Hangzhou in eastern China's Zhejiang province has also seen a rapid rise in housing prices. Average home prices in Hangzhou have increased steadily since April of last year. At the same time, land auctions have twice broken records this year.