As China's real estate climate index climbed to a three-year high in August, the government will likely face more challenges in stabilizing property prices.

To rein in the increase in house prices, the central authorities have long focused on tackling problems on the supply side. But those efforts have achieved little in persuading local governments and property developers to substantially increase land and housing supply.

Hence, it is high time to try tightening measures that can effectively slow the demand growth, especially speculative demand in the housing market.