The Chinese Academy of Social Sciences and Social Sciences and Academic Press on Thursday released an annual report that said China's smaller cities faced significantly more pressure in clearing excessive property inventory last year than did China's major municipalities.

The report released during a Beijing summit on Chinese real estate also said major gluts remain in the commercial and office property sectors.

Property prices in China have displayed no signs of decreasing despite fears of a potential supply glut. In fact, the opposite has been occurring.

Government statistics show that home prices in 100 Chinese cities increased an average 9 percent from a year earlier in April. That was after rising 7.4 percent year-on-year in March. 

The report points out that increasing property prices aren't helping to reduce inventory and the country is still building more housing.

The National Bureau of Statistics says the construction and property sectors contributed 0.4 and 0.6 percentage points, respectively, to China's year-on-year GDP growth of 6.7 percent in the first quarter. 

However, experts say that doesn't mean the real estate market is experiencing a renaissance.

According to the report, the overall real estate prices will keep climbing across the country this year under the current monetary policies for economic growth. But in the long term, property prices might start to see a decline in late 2017 if the macroeconomic growth keeps slowing down.