Ministry of Agriculture and Environment speaks out about taking advantage of information about province and city mergers to inflate land prices

Recently, in many localities, there has been a stir about information about merging administrative boundaries of provinces and cities. Many people have also taken advantage of this information to "inflate" real estate prices, causing a stir in public opinion.

Regarding this issue, Mr. Le Van Binh, Deputy Director of the Department of Land Management, Ministry of Agriculture and Environment, said: "The exploitation of merger information to inflate land prices in the past was only temporary, and it will not be easy to lure investors into "falling into the trap". Investors are now very smart, so they will know what is official information. Some people who lack information will follow the rain; or land brokers, real estate brokers will spread rumors, to inflate prices in a speculative way to make a difference. And it will only be over in a few days".

According to the Deputy Director of the Department of Land Management, in the past, people often had the notion that wherever the commune or provincial People's Committee headquarters were located, the center would be there and the infrastructure would be better invested. Therefore, land prices in areas around the center were always higher than other places.

However, according to Mr. Binh, the current policy of the State is to merge 3-5 communes, the commune headquarters will be located in the center. If the communes are not used as the center, the land price may decrease sharply. Similarly, the merger of administrative boundaries of provinces and cities is the same.

"After the merger, land prices increase or decrease depending on many factors such as planning, land use plans, local economic development plans, investment attraction policies of that locality... If there is no planning, real estate businesses will not enter, high land prices will not attract businesses. Real estate investors will be more excited when there is more information about planning and new urban development in the merged areas. That is just a psychological impact. Crowd psychology will have an impact on the real estate market but it is not sustainable. The fact that investors have taken advantage of merger information to inflate land prices in the past is only a temporary action. Professional real estate investors have analyzed and determined the impact of this information. It is not easy for real estate brokers to lure them into traps," Mr. Le Van Binh emphasized.

(According to VOV)

Source: https://baoyenbai.com.vn/12/348135/Bo-NNMT-len-tieng-ve-viec-loi-dung-thong-tin-sap-nhap-tinh-thanh-de-thoi-gia-dat.aspx