VIETNAM NATIONAL UNIVERSITY, HANOI VNU INTERNATIONAL SCHOOL BÙI THỊ THANH NGA FACTORS EFFECTING DECISION MAKING BEHAVIOR OF REAL ESTATE RETAIL INVESTORS (Các yếu tố tác động đến hành vi ra quyết định[.]
VIETNAM NATIONAL UNIVERSITY, HANOI VNU INTERNATIONAL SCHOOL BÙI THỊ THANH NGA FACTORS EFFECTING DECISION - MAKING BEHAVIOR OF REAL ESTATE RETAIL INVESTORS (Các yếu tố tác động đến hành vi định nhà đầu tư bán lẻ bất động sản) MASTER IN FINANCIAL MANAGAMENT HANOI, 2021 VIETNAM NATIONAL UNIVERSITY, HANOI VNU INTERNATIONAL SCHOOL o0o - BÙI THỊ THANH NGA FACTORS EFFECTING DECISION - MAKING BEHAVIOR OF REAL ESTATE RETAIL INVESTORS (Các yếu tố tác động đến hành vi định nhà đầu tư bán lẻ bất động sản) Major: Financial Managament Code: 8340202.01QTD MASTER IN FINANCIAL MANAGAMENT HANOI, 2021 ii ABSTRACT Vietnam real estate market has been suffering from strong uncertainties Policies, demand and investment also have been unstable and unpredictable The investors' market is still the main source of revenue for the national economy, contributing to accelerating the modernization and urbanization process, but has been operating in a mature and mature markets, with limited growth potential in the future This study aims to find out what factors retail investors influence real estate investments in to measure the degree of impact of those factors on Real Estate investment What are the factors that have a decisive impact on an individual investor's investment in Real Estate is intensively analyzed and discuss to give implications for the administration goals of the study Retail investors invest in Real Estate for the purpose of arbitrage trading The researcher intends to state clearly that retail investors and survey subjects are customers who have been buying Real Estate The difference is the purpose of buying Real Estate This section will be clarified in chapter on the theoretical basis This research purposefully investigated Real Estate Market in Quoc Oai, Hanoi through an in-depth analysis from collected data from participant survey of the market from2019 - 2021 As for the methodology, the GT method was utlized to build a theoretical model by collecting, comparing, building and connecting concepts with each other, followed by a survey quesionnaire applied on individual customers in with the minimum sample number 27 * = 135 according to the data analysis method used for this study is discovery factor analysis (EFA), CFA affirmative factor analysis , factor analysis (EFE) to evaluate the impact level of each factor Using SPSS software A questionnaire survey is employed to investigate the impacts of information search on real estate investors‘ decision-making behavior The statistical method is adopted to analyze the quantitative data obtained from 145 investors in Quoc Oai Research process: From practice, the author poses research problems, asks research questions, bases on behavioral finance theory and asks experts to build theoretical i iiii models Based on theoretical model building survey questionnaires and model testing to bring out the important factors that affect the decision to invest in Real Estate at individual customers Findings of the study show that while strategic value-added partnerships are well-established phenomenons in other industries, such as information technology, these partnerships remain scarce in real estate Unlike asset management, property management is an operational task, and, depending on the client, it is often not even considered as a management activity Therefore, property management has already been outsourced to external providers to a great extent applying the well-known criteria for "make-or-buy" decisions The decision in favor of ―buying‖ property management services therefore follows the same reasoning as for standardized commodities for which established markets exist This study demonstrated that investors (principally Vietnamese nationals) at the present time can look for real estate investment projects, where they have no special risk factors Although this market is now considered high-risk, still there are significant risks to face in this investment market, especially if you are new to the field, and take into account that the market does not want high risk at present The available system of real estate projects as such and its suitability to Vietnamese citizens in their management capability (as all other factors in evaluating a project), compared with other project types, is another important factor that would impact a participant's decisions The full and complete range of different products is offered in Hanoi real estate market and are mainly managed by local investors and companies ii iiiiii ACKNOWLEDGEMENT I would like to thank the Board of Directors, the training department of the International Faculty, Hanoi National University for creating all conditions for me in the process of studying and completing this thesis I would like to express my gratitude to the teachers and ladies who have dedicatedly taught MFM2 master class I would like to express my deep gratitude to my teacher, Dr Nguyen Thi Kim Oanh who wholeheartedly helped and guided me during the process of writing this thesis I would like to thank all my friends, colleagues and family who have always supported, encouraged and created the best conditions for me to complete this thesis Thank you! Author iii iviv TABLE OF CONTENTS ABSTRACT i ACKNOWLEDGEMENT iii LIST OF TABLES vi LIST OF FIGURES vii CHAPTER 1: OVERVIEW OF THE RESEARCH THESIS 1.1 Reasons for choosing topics 1.2 Research objectives .1 1.3 Research subject and scope 1.4 Thesis Layout CHAPTER 2: THEORETICAL BASIS AND RESEARCH MODEL 2.1 Overview of real estate market 2.1.1 Real Estate Concept 2.1.2 Basic Features of Real Estate 2.1.3 Real estate goods .5 2.1.4 Real estate classification 2.1.5 Real estate market concept 2.1.6 Real estate market characteristics 2.1.7 The role of the real estate market 2.1.8 Real estate market in recent years .8 2.2 Theory of real estate retail investors 2.2.1 Investment decision concept .9 2.2.2 Retail investors concept 10 2.2.3 Factors effecting decision – making behavior of real estate retail investors 12 2.2.4 Stages of the process through the retail investor‘s decision to invest in real estate 19 2.2.5 Some domestic and foreign studies related to the topic 20 2.2.6 Research model and hypotheses .22 iv vv CHAPTER 3: RESEARCH METHODS 28 3.1 Introduction 28 3.2 Research design 28 3.2.1 Research Methodology .29 3.2.2 Survey process and preliminary statistics 30 3.3 Data analysis .33 CHAPTER 4: RESEARCH RESULTS 35 4.1 Preliminary statistics survey variables of components 35 4.2 Cronbach Alpha analysis 39 4.3 Factor analysis 41 4.4 Test research models and hypotheses 46 CHAPTER 5: CONCLUSION AND LIMTATION 50 5.1 Conclusion 50 5.2 Limitations 52 REFERENCES 54 APPENDIX I v vivi LIST OF TABLES Table 1: The variables used in the model 33 Table 2: Interested projects .36 Table 3: Cronbach Alpha analysis 40 Table 4: Exploratory factor analysis 43 Table 5: Correlations between dependent and independent variables 45 Table 6: Model Summary 46 Table 7: ANOVA 46 Table 8: Coefficients table 47 vi viivii LIST OF FIGURES Figure 1: Hypothesizes of the study 22 Figure 2: Research procedure 29 Figure 3: Genders of participants 35 Figure 4: Ages of participants 36 Figure 5: Education level of participants 37 Figure 6: Income levels of participants 38 Figure 7: Number of years for participants being active in real estate market 39 vii CHAPTER 1: OVERVIEW OF THE RESEARCH THESIS 1.1 Reasons for choosing topics The Real Estate market has an increasingly important position in the national economy, contributing to accelerating the modernization and urbanization process, bringing many housing solutions to many classes of people, attracting strong attention strong investment capital sources, bringing a great source of revenue for the State Budget However, in recent years, a series of important events such as Vietnam's accession to the WTO, the global financial crisis in 2008, along with continuous economic and political changes have created many changes for Real Estate market Investors are wondering where to put their money when the stock market has been operating in moderation for many years, the real estate market has not shown signs of recovery, the gold bullion market has now been restricted by the state inflation and gasoline are soaring, the currency is devalued… Not only that, but the trend of investment in herds, according to the crowd is becoming more and more popular Many investors ignore the analysis of investment assets and only care about the immediate trend of the market Facing the impacts of the Covid-19 pandemic on the economy and real estate market, the Government has come up with appropriate solutions to support the real estate market to recover quickly As a result, the housing sector and the country's real estate market in general still have positive changes, creating a growth engine for the real estate market in the coming time Recently, the Government has policies to revive the Real Estate market through stimulus packages, but this is not enough, we need to study the factors that determine the investment of investors individuals to contribute to the recovery of this market Especially through these factors, we have management strategies for the sustainable development of the Real Estate market 1.2 Research objectives Find out what factors retail investors influence real estate investments in The degree of impact of those factors on Real Estate investment What are the ...VIETNAM NATIONAL UNIVERSITY, HANOI VNU INTERNATIONAL SCHOOL o0o - BÙI THỊ THANH NGA FACTORS EFFECTING DECISION - MAKING BEHAVIOR OF REAL ESTATE RETAIL INVESTORS (Các yếu tố tác động đến. .. Theory of real estate retail investors 2.2.1 Investment decision concept .9 2.2.2 Retail investors concept 10 2.2.3 Factors effecting decision – making behavior of real estate. .. tố tác động đến hành vi định nhà đầu tư bán lẻ bất động sản) Major: Financial Managament Code: 8340202.01QTD MASTER IN FINANCIAL MANAGAMENT HANOI, 2021 ii ABSTRACT Vietnam real estate market has