Report: Home market may further diverge

Real estate markets in big and small cities will further diverge this year, with big cities likely to use more financing tools to curb speculation, said a report published on Tuesday.

The blue paper on the development of real estate, issued by the Institute for Urban and Environmental Studies of the Chinese Academy of Social Sciences, said investment in real estate development reached 10 trillion yuan ($1.45 trillion) in 2016, a record high and a year-on-year increase of 6.9 percent.

Real estate markets in key cities and lower-tier cities will further diverge, as top-tier cities are likely to take more measures against speculation when new supplies are limited, while lower-tier cities will continue to struggle to reduce inventories, the report said.