La levanbinh sum

INTRODUCTION Rational for the study Hanoi is the capital of Vietnam and a political, economic and cultural center of the country The Prime Minister has approved Hanoi's overall socio-economic development strategy until 2030 with a vision to 2050 The strategy aims at: “By 2030, Hanoi will be the capital of national political and administrative power The rich, beautiful, civilized, civilized, elegant, modern, ethnic, typical for the country; a major center of economics, culture, science, education and training, healthcare, tourism, sports and international transactions” (Prime Minister, 2012) Specific economic targets such as GDP growth will increase by 12-13% in the 2011-2020 period and by 9.5-10% in the period 2021-2030; GDP per capita in 2030 will reach 16,000 - 17,000 USD, compared with 3,660 USD in 2015 To achieve the above objectives, Hanoi has proposed a number of solutions, including a very important solution and an advantage of Hanoi as compared to other provinces and cities, namely the exploitation and development of the land fund urban In the decision approving the Hanoi Urban Development Plan 2030 and Vision 2050, the area of land converted to urban land (non-agricultural land) is 92,000 hectares This is a huge land fund for the country's leading economic center Therefore, the exploitation of financial resources from this land fund will play a huge role in the successful implementation of the socio-economic development strategy of Hanoi in the coming decades In practice, the implementation of financial policy on real estate is based on the key issue is to accurately determine the real estate price however, in the past, when determining land prices for the implementation of financial policy on real estate, Hanoi's authorities have not yet based on the scientific analysis of the factors affecting real estate that is mainly determined by estimation as a result, real estate prices are not real and not match the market prices determining the right real estate price based on the analysis of influential factors is especially important and urgent therefore, the selection of the subject “analysis of factors affecting real estate prices in the implementation of financial policy - research in the area of Hanoi” of doctoral students is necessary both in theory and practice Researchobjectives This study focuses on theoretical foundations of value and elements of value in order to model models of real estate value in the implementation of financial policy Based on the research model, the thesis proposes some solutions to correctly determine real estate prices in order to mobilize financial resources for the Hanoi budget The research objectives will be achieved through the search for answers to the following specific research questions: Question 1: What factors influence real estate prices through “intrinsic value”? What additional factors required to implement the financial policy associated with real estate in Hanoi? Question 2: What factors influence the real estate price through value in accordance with the conditions and characteristics of Hanoi real estate market can be modeled? Is the importance of these factors different? What is the determinant of real estate price? Question 3: What can and should be done to address the real estate price in order to improve the financial resources for Hanoi's budget? Object and scope of research 3.1 Research object The research subjects are factors affecting the real estate price for the purpose of transfer, lease or tax calculation in the city of Hanoi 3.2 Scope of research The financial policy researched in thesis is financial policy for real estate Research on the factors affecting real estate prices in the implementation of financial policies Real estate prices are impacted simultaneously by internal factors associated with the value of real estate and external factors associated with supply-demand relations in the real estate market In this thesis, the writer mainly focuses on factors affecting the real estate price through factors belonging to the value - the basis of the real estate Research framework and process of the study 5.Contributions of the thesis 5.1.Theoretical contributions − Systemize the theoretical basis for the factors affecting the price of the property through the assessed value of the property − Select the basic theoretical model and build the research model in accordance with objectives and objects 5.2 Practice implications − With the qualitative research (in-depth interviews, case studies), the dissertation can help identify some additional elements related to Vietnam's conditions and characteristics, namely Hanoi, Especially in the context of the real estate market as well as urban development requirements of Hanoi It is the “sustainability” factor of real estate and the “image of the real estate investor.” − Adding a number of factors to build a model of research on factors affecting prices through real estate values in the implementation of financial policy in Hanoi The thesis has shown the relationship between independent variables (factors affecting price through value of real estate), control variables as well as the relationship between the price level determined and the city budget − Checking the hypotheses and the scale of factors affecting price through the value of real estate in the implementation of financial policy in Hanoi − Suggested principles and some management implications for the Hanoi authorities to properly determine real estate prices in implementing financial policies in Hanoi Thesis layout Apart from the introduction and conclusion, the thesis is divided into chapters CHAPTER1 OVERVIEW OF RESEARCH FACTORS TO REAL ESTATE PRICES IN IMPLEMENTING FINANCIAL POLICIES 1.1 Overview overseas research about the factors that affect the real estate price in the implementation of financial policies 1.1.1 Studies on the implementation of financial policies through real estate tax policy Research on tax policy for real estate has been made by many economists around the world These include the study of land tax and building tax policy (Malme & Youngman, 2001) on property tax investigations (Rudnick &Gordon, 1991); Property tax reform in the United States (Edwards, 2005) assesses and reforms the property tax in China by Hong Zhang (Nguyen Thi My Linh, 2012) (Plassmann &Tideman, 2010) concluded in the study that a complete land tax system would create many benefits for the nation, such as promoting urban development and enriching the nation through efficient use of land resources, real estate and capitalization of this resource to serve capital for economic development in general The results of the studies by Nguyen Thi My Linh ( 2012) and Bahl and Martinez-Vazquez (2007) on property taxes (including real estate tax) in developing countries have shown the advantages and disadvantages of decentralization, how to increase property tax revenues and the contribution of property taxes in developing countries 1.1.2 Studies of factors affecting real estate prices through the value of its components According to Wyatt (2013), crystallization costs and characteristics of real estate are one of the factors that make up the value of real estate The different crystallization costs will create different types of property and thus will bring different income streams, thereby affecting the value of real estate According to Olayinka et al (1997), factors affecting the value of assets include: − Variable structure: number of rooms, garage, garden, age of the building, having swimming pool or not; − Characteristics surrounding: socio-economic characteristics of surrounding neighborhoods, owners or tenants, racial composition; − Community characteristics: school; tariff area − Features such as proximity and access to living facilities such as main roads, commercial centers, churches, schools, cultural areas, airports, public transportation; − Environmental characteristics such as surrounding landscape, noise level, pollution level, drainage system; − Characteristics of time such as the season of the discount in year, the number of days of the fair The results of the study by Ozdilek et al (2002) show that the variables affecting real estate values can be divided into three main categories: physical variables, ambient variables and position variable method of valuation has been particularly effective during the era of technology, such as regression (Eboy & Samat, 2014) According to Wyatt (2013), in determining the value of real estate (urban land) in the investment appraisal method, factors (sources of information such as: (i) rental and rental growth; (ii) target rate and reimbursement; (iii) the holding period and (iv) the residual value The essential components of valuation models and valuation for financial purposes, namely property tax calculation are (Babawale, 2013): - The tax base; - The basis of valuation; - Method of valuation; - Approach to valuation; - Adjustments to valuation list/roll 1.1.3 Studies on real estate valuation in the implementation of financial policy 1.1.4 Studies on valuation of real estate for financial purposes There are many different methods used to perform real estate valuation, but most of the studies deal with five basic approaches to valuing: (i) access to costs, (ii) (iv) access to income, (iv) access to profit and (v) residual approach (Scarrett, 2008) However, another 1.2 The study of factors affecting real estate prices in implementing financial policies in Vietnam 1.2.1 Studies on real estate tax policy Nguyen Thi My Linh’s (2012) study listed some authors have research works on real estate tax policy in Vietnam Quach Duc Phap (2002) with its products in Vietnam Thai Ba Can (2004) studied the development of financial solutions to the real estate market, which offer solutions on land prices, compensation, land acquisition and clearance Dam Van Hue (2006) and Nguyen Van Ninh (2007) focused mainly on the assessment of taxes related to real estate current and offer solutions to improve taxes, fees and charges associated relating to real estate Nguyen Hong Thang (2010) studies on land tax reform in Vietnam and provides policy recommendations on housing and land tax reform on the basis of taxation is the market value of land and the value of buildings on the land, in addition the applied rates are differentiated from low to high for three cases: rural houses, urban houses, homes for business purposes Nguyen Hong Thang (2010) and Trinh Hong Loan (2010) studied real estate tax reform in Vietnam with the aim of maximizing revenues and optimizing the development of the country It is argued that the current property tax policy in Vietnam is primarily a one-off tax, not an annual form of tax on property, which is declining and reform is mandatory, the solution given is to calculate the property tax on both the land and the value of the construction on the land according to the market value of the property 1.2.2 Studies on factors affecting the value of real estate and valuation There are not many studies on valuation and valuation of real estate in Vietnam No studies regarding the elements of the value of real estate transfer based on quantitative research results are published There are some projects related to this topic as: Luc Manh Hien (2014) studied the application of the Hedonic model in the valuation of new commercial (apartment) and affirmed that there are main impacts: (1) distance to the center; (2) price; (3) security; (4) environment; (5) shopping distance Ngo Thi Phuong Thao (2011) confirmed that the most appropriate method for evaluating mortgage real estate is still comparable and costeffective The thesis has added criteria for assessing the effectiveness of mortgage real estate valuation in commercial banks, including the qualitative and quantitative criteria as follows: (1) Time and cost of valuation (2) The value of the mortgage value of the real estate / market value of real estate; (3) Value of mortgaged property / value of liquidation of real estate; (4) Value of collateral / value of revaluation Applying the regression function to analyze the relationship between real estate prices and characteristics, “position-quality theory”, Hoang Huu Phe and Patrick Wakely (2000) simulated real estate price models with two basic factors: location and quality of housing, the relationship between the status and quality in the formation of real estate prices are interrelated Nguyen Thi My Linh (2012) constructed a regression model of land price and real estate price The regression results are estimated as follows: Y = -7346,808 + 48,713x1 + 4,024x2 + 179,266x3+ 28213,306x4+ 2577,076x5 + 2154,827x6 Pham Van Binh (2013) affirmed that the basis of the tax calculation is the market value and the comparative method is the main method in determining the taxable price The thesis includes the construction of 12 content criteria for the application of the comparative method, that is: (1) legal characteristics; (2)shape lot; (3)the size, scale; (4)advantage traffic; (5)business advantage; (6)social infrastructure; (7)infrastructure; (8)the landscape and environment; (9)feng shui; (10)the time of the transaction; (11)the conditions and the nature of transactions in the market; (12)planning 1.3 Limitations and the main point of the thesis The results of this study show that there are studies related to the value, real estate prices However, there are no studies, both domestic and international, focused on factors affecting the value of real estate in the implementation of fiscal policy In other words, there have been some researches on real estate (market, taxation, finance, etc.) and housing valuation (business angle) but no dissertation on the components of the value of the transferred property is aimed at mobilizing local financial resources.The author intends to focus on factors affecting real estate prices in the implementation of financial policy on real estate, taking valuation theory (or valuation) as a theoretical foundation CHAPTER2 THEORETICAL PRINCIPLES OF IMPACT FACTORSREAL ESTATE PRICES IN IMPLEMENTATIONFINANCIAL POLICY FOR REAL ESTATE 2.1 Theory of real estate 2.1.1 Concept of real estate According to the Civil Code of 2015 of the Socialist Republic of Vietnam, Article 107 contains “Real estate includes: a) land; b) houses, buildings associated with the land; c) other assets attached to land, buildings, constructions; d) other assets as prescribed by law” A common understanding of the real estate assets are not material and removable, and survive long-term stability Thus, a property is considered real estate when the following conditions: a material element useful for human beings; occupied by individuals or communities; measurable by value; it is impossible to relocate or relocate so that its nature, functions and morphology are not changed; long lasting 2.2 Financial policy for real estate − Financial policy − Financial policy for real estate 2.3 Factors affecting the value and real estate price 2.3.1 Value and price of real estate 2.3.2 Valuation of real estate in the implementation of financial policy 2.3.3 Factors affecting the real estate price 2.3.3.1 Factors affecting the value of real estate The asset value includes the following two groups of factors: (i) asset characteristics and (ii) market-related factors including macroeconomic factors affecting real estate, social factor and demand change (Wyatt, 2013).Factors affecting the value of real estate: - Physical characteristics - Legal nature - Location - Surroundings - Historical relations and psychology two basic factors Firstly, the market value The impact of market value on market prices is reflected in the relationship between these two categories Secondly, the supply and demand relationship The change of prices in the market directly depends on the status and evolution of the supply and demand relationship Market participants can be divided into three groups: (1) factors affecting price through demand (2) factors affecting price through “supply” on goods, (3) factors affecting simultaneously the “supply” and “demand” of goods The thesis based on the classification approach of Wyatt (2013) with two basic groups of factors affecting real estate prices are (i) real estate value components (endogenous) and (ii) market (exogenous) However, research is limited to focusing on factors affecting real estate prices through real estate value components 2.3.3.2 Factors affecting the real estate price Price is a general economic category Market prices are subject to CHAPTER FINANCIAL POLICY AND ANALYSIS OF FACTORS AFFECTING REAL ESTATE PRICE IN IMPLEMENTING FINANCIAL POLICIES IN HA NOI 3.1 Implimentation of financial policy on real estate in Hanoi 3.1.1.Overview of the real estate market in Hanoi 3.1.2 Implimentation of financial policy on real estate in Hanoi − City’s budget from Real Estate − Financial status of real estate in Hanoi − The shortcomings in the implementation of financial policy on real estate in Hanoi - The financial system of real estate policies is still complicated, lack of stability and difficulties in implementation organization - Financial resources of land have not been fully exploited and active Part of land differences from the other which has not been focused on the state budget - The financial instruments system is not strong enough to lead to 10 financial results as well as limited regulatory and market control 3.1.4 The shortcomings in the implementation of financial policy on real estate in Hanoi 3.1.5 Factors affecting real estate price in implementing financial policy in Hanoi 3.2 Qualitative analysis of factors affecting real estate prices in implementing financial policy on real estate in Hanoi 3.2.1 Analytical methods, synthesis methods and basic models Quality information about markets & assets Price 3.1.3.Factors affecting the real estate price in the implementation of financial policy in Hanoi Current market situation Estimate the market value / value of the exchange Experience & capacity of the evaluater Figure 3.2: Factors affecting the estimation of market value Source: Lorenz et al (2011) Positional variable Surrounding environment variables Physical varibles Real estate value Figure 3.1: The elements of real estate value Source: Ozdilek et al.(2002) Using the results of the research by David Lorenz and Thomas Lutzkendorf (2011), the thesis considers additional factors that influence the assessment of market value / exchange value Scale selection and development Table 3.4: Property value elements and scales Code Item Source Physical factor VL1 Area Ozdilek et al (2002); Wyatt (2013); Nguyen VL2 Advantages for investment, Manh Hung et al construction (2009); Nguyen Thi My VL3 The instruction value on land Linh (2012); Pham Van VL4 Infrastructure (transport, Binh (2013) telecommunications, electricity, etc.) Location VT1 Distance to center VT2 Convenient for business, living VT3 Traffic density VT4 The main transportation sector 11 12 Ozdilek et al (2002); McCluskey and Borst (2007); Golob et al (2012); Nguyen Manh Hung et al (2009) ; Nguyen Thị My Linh Code Item Surroundings MT1 Educational level of the surrounding area MT2 Security of the surrounding area MT3 The ecological environment of the surrounding area MT4 Educational and medical services MT5 Commercial and shopping services MT6 Sporting and entertainment services Source (2012); Pham Van Binh (2013); Luc Manh Hien (2014) Code Item Sustainability BV1 Investment and tradeability in the future Ozdilek et al (2002); Oloke et al (2013);Luc Manh Hien (2014);Pham Van Binh (2013) BV2 BV3 For image variables and sustainability, the authors use the scale of David Lorenz and Thomas Lutzkendorf, which developed the Georgia Warren-Myers (2013) scale, and adds a scale from the results of qualitative research Table 3.5: Image variables and sustainability and scales Code Item Source Image HA1 Brand and reputation of the real estate Lorenz et al (2011) owner HA2 The nature and characteristics of the The author's proposal real estate owner following qualitative research HA3 The purpose of real estate buyers The author's proposal following qualitative research HA4 Experience and capacity of real estate The author's proposal buyers following qualitative research 13 BV4 Source The author's proposal following qualitative research Future level of legal risk Warren-Myers (2013) The degree of environmental risk in the Lorenz et al (2011) future Brand and reputation of real estate The author's proposal buyers following qualitative research Table 3.6: Regulatory variables and sustainability and scale Code Item Source PP Real estate valuation and real estate Babawale (2013) revenue NL Experiences and capacity of the Bowles et al (2001) valuation team and property value TT Real estate market information system Warren-Myers (2013); Ngo Thi Phuong Thao (2011) For the relationship between the assessed value of the property (or the assessed price of the property) and the real estate revenues, the author uses the scale of (Babawale, 2013) Table 3.7: Relationshipsbetween real estate value, assessed values, budget revenues and scales Code Item Source GT1 Real estate property value and price Bowles et al (2001) GT2 Property value and revenue from tax Nguyen Thi My Linh on real estate (2012); Bahl and Martinez-Vazquez (2007) 14 3.2.2.5 Research model and hypotheses To answer the research questions posed in theoretical foundations, the author considers from the previous studies In response to the second and third research questions, the authors set up the following research model and the research hypotheses: H1: The physical variables of real estate will have a positive influence on the real estate value H2: The positional variables of the real estate will have a positive influence on the real estate value Physical 6a Physical Location 3.Environment Image Real estate value 6b Location Verified Real estate value Income from real estate 6c.Environment Stability Figure 3.3: Model real estate value elements for financial purposes Source: Synthesized and built by the author H3: The surrounding environment variables of the property will have a positive effect on the real estate value H4: The image variables of the real estate will have a positive effect on the real estate value H5: Sustainability of real estate will have a positive effect on real estate value H6a:Price appraisal method ofreal estate will have a positive effect on real estate value H6b: The experiences and capacity of the valuation team will have a positive effect on the value of real estate 15 H6c: Real estate information system will has a positive effect on real estate value H7: Estimated value of real estate (or appraised real estate prices) will has a strong influence on real estate revenues Based on the results of the qualitative research, the author affirms the existence of positive relationship between appraised real estate value and real estate revenue In other words, when the property is assessed for high value or real estate transfer price is appreciated, the revenue from the real estate also increased Therefore, the H7 hypothesis is not subject that need to be tested CHAPTER QUANTITATIVE ANALYSIS OF FACTORS OF REAL ESTATEPRICE IN THEIMPLEMENTATION OF FINANCIAL POLICY IN HANOI 4.1 Research sample The survey was conducted in the Hanoi with the managers, civil servants in the Hanoi government agencies, real estate business investors, banks and credit institutions Time of survey: from 20/7/2016 to 29/8/2016 Sampling method: convenient method The collected information was highly reliable because the questionnaires were sent to the surveyed people together with the official letter of the management agency Number of questionnaires sent out: 900; number of returned questionnaires: 870; number of questionnaires from which data were used for analysis: 866 4.2 Method of quantitative information processing 4.3 Statistics describe the factors / scales used in the research model 4.4 Assess the reliability of the scale In the study, the authors used Likert five-point scale 4.5 Results of EFA 16 The result of the EFA analysis shows the matrices of the observation variables of real estate characteristics The correlation coefficient between the high level>0,5 indicates the interlinking between the observation variables At the same time, when decomposing the EFA factor, the observation variables express the real estate characteristics which has the same factor Most observation variables have relatively strong correlations However, the observation variable MT6 has a small correlation coefficient