(Yicai  Global) Feb. 19 -- Second-hand house prices across China's 70 large and  medium-sized cities exhibited a compound annual growth rate of 5.5  percent between 2015 and 2018, lagging behind the expansion of the  country's gross domestic product, according to a new report.

House  prices across urban areas increased 23.7 percent overall between  January 2015 and December last year, according to the report from Yiju  Real Estate Research Institute. 

Prices  in China's four first-tier cities have expanded 61 percent over the  period, far outstripping the country's national growth. Shenzhen led the  way with an 80 percent swell, followed by Beijing and Guangzhou at  close to 60 percent and Shanghai trailed with 45 percent, China News  Service reported.

Apart  from first-tier cities, the report also analyzed four other categories,  namely, strong second-tier cities, non-strong second-tier cities,  third-tier cities in urban agglomerations, and third-tier cities outside  of urban agglomerations.

The  growth rate of home prices in strong second-tier cities led with 35  percent, while those of non-strong second-tier cities and third-tier  cities in urban agglomerations are in line with the national average  increase. House prices in third-tier cities outside of urban  agglomerations grew at a below-average pace, especially those in the  northeast, central and western regions.

First-tier  cities embarked on stronger regulation of the housing market in the  second half of 2017, and prices are expected to stabilize and recover in  the future. Second- and third-tier cities are ushering in a new phase  of regulation with second-hand home prices in some cities in eastern and  southern China beginning to fall. 

Regulation  in third-tier cities is expected to last for a long time because of the  weak economy, said Wang Ruochen, a researcher at Yiju Real Estate  Research Institute.

Editor: William Clegg