On the afternoon of March 24, the Thai Binh Provincial Police noted that misleading information about potential mergers of provinces and cities has been spreading through social media groups, especially on Facebook.

Although no official decisions have been made by competent authorities, the real estate market in areas rumored to undergo mergers, particularly those speculated to become new administrative centers, has experienced significant fluctuations, causing market confusion.

Notably, numerous advertisements have surfaced, promoting land for sale in areas such as Hai Phong, Hung Yen, and Hanoi, with claims that property values have soared following news of possible mergers.

These investment invitations often cite reasons such as: After the merger and upgrade of administrative units, the government will prioritize financial resources, personnel, mechanisms, and policies to develop infrastructure to meet the demands of new administrative centers. These include power systems, schools, and roads, resulting in increased real estate value.

However, authorities urge the public to understand that the current “hot” price hikes do not accurately reflect the real value of properties or the actual market demand.

Additionally, investors may experience FOMO (fear of missing out), leading them to purchase land in areas not designated for development or where legal ownership is not guaranteed.

In the case of a real estate bubble, buyers may end up purchasing property at inflated prices, becoming victims of price manipulation. This may result in liquidity issues when attempting to resell or even force investors to accept losses to liquidate assets after the market stabilizes and merger information is publicly clarified.

The Thai Binh Provincial Police have stated that individuals who deliberately spread false information or commit fraud for personal gain can face fines of up to 50 million VND (approximately $2,100) or even criminal prosecution for asset misappropriation.

To prevent falling victim to scams and financial losses when investing in real estate, the police advise investors to remain calm and not trust widespread unverified rumors about administrative mergers on social media. Only information published by official agencies should be considered accurate.

Before conducting real estate transactions, investors should thoroughly investigate the legal status of properties, including ownership, planning, and tax obligations, to assess investment feasibility and future success opportunities.

Moreover, if investors detect fraudulent activities in real estate transactions, they should promptly report to local authorities or the nearest police station for timely intervention and resolution.

Trong Tung