On Oct. 20th, 2019, the news broke that a real estate agency used fake news to hype up pre-sale houses, which endangered the order of market transactions, and this incident triggered heated discussions online. This study aims to understand the impact of this fake news on society, understand the attitudes and opinions of the practitioners, and further analyze the impact from the perspective of information dissemination. The study used focus group interviews with real estate agents to understand the motivation and purpose of fake news use; then, we analyzed observed public opinion big data. The study found that the biggest problem is that laws and regulations are not implemented, causing many public grievances. Real estate transactions must be regulated and returned to self-occupancy demand rather than market speculation. Big data analysis found that the absence of stereotyped contracts for buying and selling is severe; in addition, fake news on social media has become a shortcut to hype new projects, further disturbing the market. This kind of chaos disrupts the order of transactions and discourages consumers. The study suggests that the policy of "real price registration 2.0" should be implemented, and only after the builder obtains the construction license can they start advertising to eliminate the phenomenon of “red slip transactions.” The government needs to strengthen the investigation of false advertisements, establish real estate advertising regulations, form a self-discipline committee, and improve the development of the industry through the guidance and assistance of external experts.
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