Keeping property prices in check has been a key agenda for Beijing, not least due to fears of asset bubbles.
Earlier this month, China unveiled fresh measures, including higher down payment requirements, to try and curb speculation in the sector.
However, there are fears that excessive tightening may hurt economic growth.
“The government is in a really difficult situation. It needs to keep the housing prices in check to keep them affordable for the average Chinese,” said Shaun Rein managing director at China Market Research Group.
“But at the same time Beijing can’t afford a sharp decline in the real estate and construction sectors which have been key drivers of its growth.”
New home prices in Beijing in February rose 5.9%, from a year earlier, while they advanced 8.1% in Guangzhou and 3.4% in Shanghai.