China's property prices in first-tier cities have surged over the past year, prompting some cities to introduce cooling measures, or de-stocking property. Supply in first-tier cities and some second-tier cities, like Shanghai, Beijing and Shenzhen, falls slightly short of demand while the situation in third- and fourth-tier cities is just the reverse.

The paper says that sales of second-hand property in Beijing accounted for 73 percent of all, the highest rate since 2004. And it also estimates that the sales gap between second-hand and new houses will get larger in the future.

The paper forecasts that home prices will rise slightly nationwide. But growth will be slower in first- and second-tier cities, and faster in third- and fourth-tier cities, guided by government policies.