On March 24, according to the Thai Binh Provincial Police Electronic Information Portal, recently, there has been some information about the plan to merge provinces and cities into groups on social networks, especially Facebook.
Although there has not been an official decision from the competent authority, the real estate market in the merged areas, especially the locations rumored to be new administrative centers, has had many fluctuations, causing market disruption. Specifically, there have been many posts about selling land in Hai Phong, Hung Yen, Hanoi...
Investment invitations often give the following reasons: After merging and upgrading administrative units, the State will prioritize resources in terms of finance, human resources, mechanisms, and policies to build infrastructure, meeting the requirements of new administrative centers, such as power systems, schools, roads, etc. This leads to increased real estate value.
However, it is necessary to realize that the "hot" price increase at the present time does not really reflect the value of real estate and market demand.
In addition, investors may be affected ideologically, there is a "FOMO" mentality, also known as the fear of missing out mentality. This leads to investors being able to buy land in areas that are not planned as planned or the legality of real estate is not guaranteed.
At the same time, when a virtual land fever occurs, buyers may have to buy land at a higher value than the actual value, becoming victims of the phenomenon of land price inflation, will have difficulty in liquidity when they want to resell, and even have to cut losses to liquidate assets after the market calms down and the merger of administrative units is publicly announced.
For subjects who are "land brokers", acts of false information and fraud for profit can be fined up to 50 million VND under the Law on Real Estate Business, and even prosecuted for the act of "Fraudulent appropriation of property" under Article 174 of the Penal Code 2015, amended in 2017.
In the face of the above situation, to avoid being scammed and suffered losses when investing in real estate, Thai Binh Provincial Police recommends:
First, investors need to stay calm and not trust false rumors circulating on social networks about merging administrative units. The information is only completely accurate when made public by official agencies.
Second, before conducting real estate transactions, investors need to carefully study the legality of assets such as: Ownership, planning, tax obligations... to study investment efficiency, future success opportunities.
Third, when investors discover a situation of fraud in real estate business activities, investors need to immediately report to the local government or the nearest police agency to promptly take measures to handle and prevent violations of the law.
