The Ministry of Agriculture and Environment speaks out about the exploitation of information regarding provincial and city mergers to inflate land prices.

According to a representative of the Director of the Land Management Department (Ministry of Agriculture and Environment), the recent exploitation of information about provincial and city mergers to inflate land prices is only temporary.

Recently, there has been a lot of buzz in many localities about the merger of administrative boundaries between 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 Land Management Department, Ministry of Agriculture and Environment, stated: "The exploitation of merger information to inflate land prices in the past period was only temporary, and it will not be easy to lure investors into the trap. Investors are now very smart and will know what is official information. As for some uninformed people, they will follow the trend; or land brokers and real estate agents will spread rumors to artificially inflate prices for profit. And it will only last a few days."

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

However, according to Mr. Binh, the current policy of the State is to merge 3-5 communes, and the administrative center will be located where the commune's main office is situated. If the communes are not designated as administrative centers, land prices may drop sharply. Similarly, the merger of administrative boundaries between provinces and cities will follow the same principle.

"After mergers, whether land prices increase or decrease depends on many factors such as planning, land use plans, local economic development plans, and investment attraction policies of that locality… Without planning, real estate businesses will not enter, and high land prices will not attract businesses. Real estate investors will be more enthusiastic when there is more information about planning and new urban development in the merged areas. That is only a psychological impact. Herd mentality will affect the real estate market, but it is not sustainable. The exploitation of merger information by investors to inflate land prices in the past was only a temporary action. Professional real estate investors all analyze and determine the impact of this information. Real estate brokers cannot easily lure them into the trap," 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