THE city of Tianjin said Tuesday it will increase scrutiny of homebuyers and their eligibility, hitting back at criticism it was skirting curbs in place to fend off property speculators.

Tianjin, just 30 minutes southeast of the capital Beijing by high-speed train, has seen a sharp decline in real estate transactions due to restrictive policies drawn up to keep speculators at bay.

Despite a burgeoning high-tech industry, economic growth has slumped. Tianjin’s US$290 billion economy — bigger than Vietnam’s — expanded just 1.9 percent in the first quarter of the year, the worst among all of provincial-level regions.

Last month, the local government followed in the footsteps of tens of other Chinese cities when it relaxed residency requirements, allowing out-of-towners permits to live and purchase property in Tianjin, as long as they are below the age of 40 and hold a college degree.

Critics say such policies to attract talent from other cities are undermining efforts to control property speculation and are artificially propping up prices.

Tianjin will closely monitor the eligibility of homebuyers, said the Tianjin government Tuesday, without providing any other details.

It will also increase oversight of property developers and real estate agents and crack down on any market behavior that could cause “panic.”(SD-Agencies)