March home prices rose for the sixth month in a row. Prices for 70 major cities monitored by the housing authority grew 4.9 percent, that's faster than February.

More than half of the cities in China are seeing more expensive homes in the first quarter of 2016. Compared with last year, 40 out of 70 cities saw new home prices rise, while prices fell in 29 cities. The southern city of Shenzhen continued to be the top performer with home prices rising nearly 62 percent from a year ago. But some experts say that prices in big cities like ShenZhen are bound to cool down.

"The surging home prices in Shenzhen is very abnormal. It is surely unhealthy for the market, for developers, and home buyers. Adjustments are needed. We are hearing that some luxury homes are sold with one to two million yuan. That's the result of the market adjustment," said Mo Tianquan, chairman of China Index Academy.

Looking at the big picture, price increases among first tier cities eased due to control measures, but price hikes among many second and third tier cities have seen an acceleration, some even growing faster than their first tier peers. Some analysts say the robustness in the real estate sector will go on for a while.

One major determinants of home price is land price. China's Ministry of Land and Resources released land prices data for the first quarter and the overall growth speed picked up slightly compared to last year, another indication of the housing sector gaining heat.

"This makes a notable comparison against the latter half of last year when land prices were declining by the quarter," said Zhao Song, land price dept. head of China Land Surveying and Planning Inst..

Experts say the main driver behind the price increase was a series of better than expected economic data in the first quarter. But on the other hand, preventing the market from overheating in the first and second tier cities, might once again become a big concern for the government.