Summary of economic doctoral thesis factors affecting the intention to buy houses of people in urban areas of vietnam

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMIC UNIVERSITY TRAN XUAN LUONG "Factors affecting the intention to buy houses of people in urban areas of Vietnam" Major: Real Estate Business Administration Code: 9340101 SUMMARY OF ECONOMIC DOCTORAL THESIS The work was completed at: National Economics University Instructors: Assoc Prof Pham Van Linh Prof Pham Lan Hương 1st reviewer: ………… ………… nd reviewer:………… ………… rd reviewer:………… ………… The dissertation will be reviewred in front of the State Council for Thesis Evaluation at…… The dissertation can be found at: National Library Library of National Economics University Hanoi, 2020 INTRODUCTION Rationale Vietnam is stepping up on the process of urbanization in the local area, the speed of urbanization is shown by the growth rate over time of urban population and urban area (Tran Minh Tung, 2019 ) The World Bank (WB, 2011) argues that urbanization in Vietnam is closely related to five transition factors, namely administration, space, economy, population and social welfare These transformations have drastically changed the physical and non-physical appearance of urban areas The increase in density in new urban space areas, often located on the suburban, is seen as a result of the urbanization process through new urban area projects Urbanization in Vietnam is happening at a very fast pace, with increasing population pressure, and is putting the burden of housing problems on urban areas (Tran Ngoc Chinh, 2019) Cities in Vietnam are currently facing an imbalance between the availability of housing and meeting real needs (JLL, 2020) Supply in high-end and luxury apartments is currently quite high; According to JLL, the density of luxury apartments in Ho Chi Minh City reaches units per 1,000 people, nearly the same level as in BangKok, Thailand Although the market supply is very large, according to information from the Ministry of Construction, at the end of 2019, the real estate market (RE) still has a large inventory (about 22,976 billion VND) This fact shows that the current supply of RE products in urban areas in Vietnam has not reached the suitable customers The calculation of JLL (2020) shows that, depending on the model, the basic facilities and the location of the project, the price must be lower than $ 1,200 (approximately VND 27,000,000) per square meter will be considered affordable housing This is a high price even compared to the average income per capita of Hanoi capital in 2019 at VND 120,000,000/person/year Therefore, the current RE market in Vietnam urban areas with mostly middle and high-end apartments are only serving the middle class of society The middle class, according to the definition of the World Bank (2015), is the person with a living standard higher than USD15/ person/day, equivalent to VND 10.6 million/person/month if calculated at the exchange rate in early 2020 This object of Vietnam is growing rapidly in recent years, accounting for 15% of the population in 2019 (approximately 14.4 million) and is estimated to reach 20%, 25% soon This is an important role in economic development, boosting demand due to high consumption, contributing to creating more jobs for society and helping the economy reduce its dependence on foreign investment (Dang Hoang Hai Anh, 2020) Although being a target customer of the Vietnam RE market, buying a house is always one of the important things in human life (Felicia et al., 2014) Because buying a house is a complex decision-making process, shown by the high cost, irregularity, risk, high selfexpression and significant differences in people's perceptions (Manivannan et al., 2014) ) Buying a house is also considered a long-term investment decision since it is the main point affecting people's living standards from both macro and micro aspects (Paul et al., 2019) The middle class is said to be aware and demanding of high quality products; so with an important, high-value product like housing, it becomes even more cautious According to state and local planning regulations, The real estate market in Vietnam's urban areas will include the main products of condominiums, villas, adjoining houses or penthouse and shophouse These are all high-value products, which have been located in the middle and high-end segment in the past period, making purchasing decisions more difficult The real estate market in urban areas of Vietnam is paradoxical when the supply is abundant, customers are available and increasing but the amount of inventory is still large The question is whether or not the sellers fully understand the buyers; know when the customer's purchase process is formed, influenced by what factors, what are the special factors that middle-class buyers require in housing supply In addition, the rapid urbanization process makes the law as well as institutional and administrative factors developed incompatibly, leading to a lot of housing disputes in the past period, which makes middle-class people become more cautious Research on the house buying intention (BI) of domestic and foreign authors shows that there have been a number of studies of authors around the world on customers and types of houses or real estate However, in Vietnam, it is still very few and most are focusing on researching social housing or low-income housing - the source of real estate products is very few in Vietnam Thus, it can be seen that both theory and practice show the urgency of scientific studies, especially quantitative studies on housing buying behavior in urban areas of Vietnam to provide grant bases to investors as well as policy makers in reaching customers effectively This process begins with the intention of buying a house that matches the personal and psychological characteristics of the customer Because buying intention reflects consumers' beliefs related to the consumer behaviors chain is an individual motivation in awareness to promote efforts to conduct behaviors (Ajzen and Fishbein, 1980) In this context, the PhD student selected the topic "Factors affecting the intention to buy houses of people in urban areas of Vietnam" to be the subject of the doctoral thesis In which, focusing on researching on house buying intention of middle class people in Vietnam - the target customers of the current urban real estate market Because of the different characteristics of housing products in urban areas, PhD student also plans to divide the product types into two groups, called private houses and apartments In which private houses are understood as villas, adjacent houses and shops An apartment is defined as an apartment or a penthouse And besides analyzing the factors affecting house buying intention of people in urban areas of Vietnam, the thesis will also compare the differences in buying intention between the two types of apartments and private houses of researched customers Research questions - What are the main factors influencing the intention to buy a house with the price range of VND 3-5 billion of the middle class customers in urban areas in Vietnam? - Is there a difference in the influence of factors on the intention to buy an apartment and the intention to buy a private house with the same price of 3-5 billion VND of the middle class customers in urban areas in Vietnam? - What demographic characteristics differ between two middle-class customers who intend to buy an apartment or a private house, at the same price of 3-5 billion VND in urban areas of Vietnam? Research purposes and missions Research purposes: The dissertation is aimed at assessing the influence of different factors on housing buying intention in urban areas of Vietnam In particular: comparing the differences in the influence of factors on the buying intention of middle-class customers for apartments and private houses in urban areas Vietnam with prices ranging from VND to billion Detail goals: - Review theoretical schools and previous studies on houses/real estate buying intention On that basis, determine the theoretical basis for the research of the thesis; - Build a model to study the factors affecting intention to buy houses of people in urban areas of Vietnam; - Test the proposed research model with data collected from people with intention to buy houses in Vietnam urban areas; in which divided into 02 groups: people with apartment buying intention and people with private house buying intention; - Make recommendations to consumers (homebuyers), developers and policy makers in the design, construction and distribution of housing products in urban areas in accordance with consumers' buying intention Research subject and scope 4.1 Research subjects The research object of the thesis is the factors affecting intention to buy houses of people in urban areas of Vietnam a comparison of the different levels of influence between apartment buyers and home buyers 4.2 Research scope Scope of content: - Research on house buying intention, the factors affecting house buying intention and the characteristics of people in urban areas of Vietnam - The thesis does not study other processes in the behavior of consumers buying houses in Vietnam's urban areas such as: decision of buying houses; satisfaction after buying etc Scope of research method: Assessing the influence of factors on house buying intention is analyzed from the perspective of the house buyer, not from the perspective of the seller / broker or construction investor or policy makers Scope of space: - The study focused on 02 groups of customers who are buyers of apartments and private houses: + People who have buying intentions considering one of the above apartments or private houses, up to the time of answering the survey questionnaire + Middle-class customers are those who own a relatively better financial position to actually make a choice of them (Linghi Li, 2010) Because the research objectives of this thesis are not aimed at examining the solvency issue (price factor) but want to compare the impact of factors on the intention of people on buying a house How the intention of the person who wants to buy the apartment is different from that of the person who wants to buy a private house when they have the same amount of money to choose to buy a house + The price of a private house or apartment that customers have intention to buy is in the range of 3-5 billion This price is chosen because according to the statistics of one of the big and reputable real estate information sites (batdongsan.com.vn), this is the price with the largest transaction volume in both types of apartment buildings and private house In addition, according to the evaluation of experts of the Real Estate Association of Vietnam, in the last years, the rate of absorption of residential real estate reached the highest rate, nearly 95% Notably, the absorption rate of apartments in the mid-end segment is the highest, over 97% Scope of time: - The thesis collects secondary data in the period of 2014 - 2018 - Primary data was collected in the period from June 2018 to June 2019 - Analysis and reporting data in the period 2019 - 2020 Summary of thesis a / The research process of the dissertation consists of 12 basic steps: research problem (step 1); building theoretical basis (step 2); research model and questionnaire establishment (step 3); scale construction, pilot test, perfect scale (step 4,5,6,7,8,9); extensive investigation (step 10); information analysis (step 11), discussion and recommendations (step 12) b / The dissertation's research methodology combines the deductive method and inductive method c / Data collection method: For secondary data: the method of collecting desk data For primary data: in-depth interview method; expert method, test survey; Investigate by questionnaire New contributions of the thesis The thesis has contributions in both theoretically and practically, as follows: - Contribution 1: Systematized theories about theoretical models related to human behavior, consumer behavior as well as intention to buy houses - Contribution 2: Establishing an analytical model of factors affecting the intention to buy a house in urban areas in Vietnam in the price range of 3-5 billion VND of middle class customers based on the TPB model by Ajzen (2009, 2012) The model consists of 05 independent variables (attitudes, subjective norms, perception of behavior control, house position, legality), 05 control variables that are demographic characteristics of people (gender, age, occupation, education level, family size) and 01 dependent variable (buying intention) - Contribution 3: Contribution 3: Comparison of the differences in the influence of factors on buying intentions of middle-class customers for apartments and houses in urban areas in Vietnam with prices ranging from 3- billion - Contribution 4: Affirm the difference in the intention to buy an apartment or private house with the price of 3-5 billion VND of middle-class customers with different demographic characteristics - Contribution 5: Propose a number of suggestions to consumers, investors and policy makers on home or apartment products at VND 3-5 billion in urban areas of Vietnam These suggestions may help: + Home buyers, brokerage consultants to have references to find themselves a private house or apartment at VND 3-5 billion, suitable to their requirements + Investors to build houses based on research results to make timely and effective investment decisions + State agencies to adopt appropriate guidelines and policies and approve investment projects on housing construction, aiming at the right target, using effectively, minimizing the phenomenon of "ghost town" causing losses for national resources, avoid wasting risks and social consequences household use or as a gift to someone else Personal consumer purchases are ultimately for personal consumption On the other hand, group consumers buy products and services to run an organization, including for-profit and non-profit organizations or governmental organizations and institutions Engel's definition of consumer behavior, Blackwell & Miniard (1990:G4), states that “actions are directly related to the acquisition, consumption and handling of products and services, including decision processes before and after these actions” More recent descriptions or definitions (which are not substantially different from above) can be found in Arnould, Price & Zinkhan (2002:5) and Peter & Olson (2002:6) Consumer behavior is also defined as how individuals, groups and organizations select, purchase, use and discard goods, services, ideas or experiences in order to meet their needs (Kotler & Keller, 2009: 9; Solomon, 2009: 7) A broader and “more complete” definition of consumer behavior is “the totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units over time."(Hoyer & Macinnis, 2010: 3) Schiffman, Hansen & Kanuk (2012: 5) argue that “consumer behavior is about finding, buying, using, reviewing and rejecting products and services that they hope will meet the needs of people ” 1.2 Consumer behavior and housing products Walters (1974: 7) defines consumer behavior as “the process by which individuals decide what, what, when, where, how and from whom to purchase goods and services” Mowen (1993: 6) provides another definition by explaining consumer behavior as “studying the units of purchase and the exchange processes involved in the acquisition, consumption and disposal of goods, services, experiences and ideas ” This definition focuses on the purchases of entities that include not only individuals but also groups that purchase products or services Schiffman & Kanuk (1997: 648) define consumer behavior as "The behavior consumers display when searching, buying, using, reviewing and disposing products, services and ideas" Schiffman & Kanuk (1997: 6-7) clarify the definition by explaining that consumer behavior studies how individuals make decisions to use their available resources (time, money, effort) on consumption-related items It includes research about what, why, when, where, and how often they buy and how they use the product In addition, it includes all the behaviors consumers exhibit in finding, buying, using, evaluating and disposing of products and services they expect will satisfy their needs Also according to Schiffman & Kanuk (1997: 6-7), two different types of consumers can be distinguished as individual and group consumers Individual consumers who purchase products and services for personal or Several studies have discussed homebuyers' buying choices and have determined that homebuyers should be referred to as consumers in certain consumer activities such as choosing, buying and using home products (Fierro et al., 2009; Hoang & Yi, 2010; Opoku & Abdul-Muhmin, 2010) Housing selection aims to maximize benefits in housing use, in the context of housing as a durable commodity of individuals and households ( Koklic and Vida, 2009; 2011) Meanwhile, from a behavioral economics perspective, housing choice is seen as a problemsolving process with behavioral orientation, values-focused (Collen and Hoekstra, 2001; Jansen, 2014) and influenced by psychological factors with many different biases (Gibb, 2009) In the decision-making process, individuals need to consider different goals, for example the individual makes a conscious effort to make a correct choice, maximizing benefits on a experiences of minimizing negative emotions (Bettman et al., 1998) However, individuals strive to achieve certain goals and values when solving their problems The problem-solving process takes place in a series of well-analyzed phases, although a particular problem may repeat complicatedly Collen and Hoekstra (2001) together with the research team of Jansen et al (2011) have reviewed the document and conceptualized stages of the problem solving process such as: (1) Problem perception; (2) Clearly identify the problem; (3) Design and testing; (4) Selection; (5) Consideration of commitments; (6) Action; and (7) Feedback Interestingly enough, house buying decision making is often influenced by the people involved At the household level, family members have an influence on home buying CHAPTER OVERVIEW OF THE RESEARCH AND AND RESEARCH MODEL 1.1 Consumer behavior decisions (Levy and Kwai-Choi Lee, 2004) In addition, the activity of choosing / buying a house is considered an inherently social activity and each decision-maker is influenced by emotional and other psychological factors Therefore, the decision-making process includes things such as: setting goals, discussing and negotiating family needs about housing, consulting with intermediaries, forecasting changes in housing issues (housing features and market trends) according to Levy et al (2008) Section 1.4 will focus on the definition of consumer behavior patterns, their purposes and advantages and ultimately discuss some of the patterns of consumer behavior along with their importance in understanding consumer behavior These models include: the Bettman information-processing model, the Nicosian model, the Howard Sheth model, the Howard model, the Engel-Blackwell-Miniard (EBM) model, the Theory of Rational Action (TRA), and the Theory of Planned Behavior (TPB) 1.5 Theory of Planned Behavior (TPB) and house buying intention 1.5.1 TPB model studies on house buying intention Research by Chung et al (2018) has mentioned quite a few different authors' approaches to buying intention Buying intention is defined as the probability that a customer is willing to buy a product in the near future (Wu et al., 2011) According to Sidi and Sharipah (2011), a buying intention is considered a subjective judgment by the customers it reflects after the customer evaluates whether to buy a product or service A buying intention is also defined as a situation in which a customer is willing to deal with a seller and may come to consideration of purchasing some products or service (Dodds et al., 1991) The higher buying intention, the higher customer's willingness to buy a product or service (Schuler and Adair, 2003; Chiew et al., 2014) Studies have also shown that the clients are more likely to convert their intentions into actual buying behavior (Zawawi et al, 2004) Chung et al mentioned that buying intention is the dependent variable predicted by an independent variable such as attitude, cognitive behavior control and subjective norms (Ajzen and Fishbein, 1980; Ajzen, 1991) In the study of Julius et al (2016) also reviewed some concepts of buying intention and house buying intention of different authors Wu and Teng (2011) identify buying intention as potential customers in the plan to purchase a particular product or service in the future Interestingly, both buying intention and buying decision are at two different stages in consumer behavior theory however there is a significant link between both phases, especially the association related to house purchase (Ajzen, 1991; Han and Kim, 2010; Kunshan and Yiman, 2011) According to Ajzen (1991), intention is considered to include the motivating factors that lead to a particular behavior in which intention implies how much effort a person performed for the act to happen In other words, a person with a high buying intention is more likely to buy Hence, Julius et al (2016) defined home buying intent in their study as how consumers are willing to buy a home in the near future This is a definition consistent with the definition of Ajzen (1991) Mohamad et al (2013) mentioned that in research on real estate market development in Malaysia, buying intention can be defined as the plan to buy a particular good or service in the future It can also be defined as a consumer's attitude toward a product referring to its beliefs, feelings, and intentions to buy Plabdaeng (2010) says that making buying decisions is one of the activities that people all the time People actually make decisions about many things According to Sidin, Zawawi, Wong, Busu, & Hamzah, (2004), family members will have different roles in making purchasing decisions Sometimes, the decision maker may not be the one with the purchasing power to buy the product (Mansumitchai, 2002) Author Tawfik in the 2014, 2015 (a, b, c) publications also mentioned, intention is a sign of one's willingness to act and it is the immediate premise of behavior Because Intention is the dependent variable predicted by an independent variable namely Attitude, Subjective Norm and Cognitive Behavior Control Intention changes over time and as the interval increases, the correlation between intention and action decreases (Ajzen, 1991; Ajzen & Fishbein, 1980; Han and Kim., 2010; Kim and Han, 2010) Davis et al (1989) and Taylor & Todd (1995) found in their studies that intention is a strong predictor of behavior 1.3 Human behavior model According to Kotler (in Gould, 1979: 33), the extremely difficult task is to discover why people buy because they are influenced by many factors One reason is that people are greatly influenced by their mentality, which ultimately leads to the decision to make a public purchase Runyon & Stewart (19B7: 694-695) explains the theory of human behavior by saying that it represents beliefs related to human nature as well as the cause of their behavior Therefore, people can be viewed from many perspectives For example, if people are viewed from an economic perspective, marketers can try to influence them with incentives However, from a social theory perspective, marketers can try to influence people by calling for group norms, reference groups and values According to Runyon & Stewart (1987: 695), when discussing human behavioral models, it is important to note that the proposed models are considered to be an incomplete description of people, in which the Different models may be suitable for different marketing situations However, the above attitudes and models of human behavior have provided valuable input on consumer behavior, as they strive to provide insights into why people consumers make reasonable buying decisions To better understand human behavior, four models will be discussed with marketing applications based on Kotler's findings (in Gould, 1979: 34-46) The models of human behavior discussed below are: the Marshal economic model, the Veblenian psychosocial model, the Pavlovian learning model, and the Freudian psychoanalysis model In addition to these four models, Maslow's need hierarchy theory discussed the importance of understanding the impact of needs and motives on consumer behavior 1.4 Consumer behavior model The discussion of human behavior models in section 1.3 shows efforts to explain human behavior as well as its effect on consumer behavior The models take a very narrow approach in terms of their interpretation of the person's behavior and its impact on consumer behavior They focus on only a small set of possible behavioral effects, such as the Marshal model, only on the influence of financial resources on behavior The shortcomings of human behavior models led to more complex models of consumer behavior appearing in the early 1960s According to Runyon & Stewart (1987: 698), consumer behavioral models, in contrast to human behavioral models, attempt to describe and systematize the entire purchasing process, thus providing a guide for further learning and research on consumer behavior Therefore, the buying intention is the premise of the buying decision (Phungwong 2010) In Tech's (2013) study on the intention to buy a greenhouse in Malaysia, the author also pointed out that intentions are subjective assessments of how individuals will behave in the future, which provide a connection between individuals and products purchased (Kim & Littrell, 1999; Madden et al., 1992) The power of intention as an alternative measure for future behavior has been demonstrated in previous studies (Morwitz etal., 2007; Chan & Lau, 2000) Among the theories used to explain the buying intention, the Theory of Planned Behavior (TPB) - an extension of Theory of Reasonable Action (TRA), has been shown to provide a framework for identify predictors of the intention to buy a particular product (Ajzen & Madden, 1986; Han et al., 2010) To determine the buying intention of home buyers, it is necessary to know their attitudes Research by Nguyen Thi Tung Phuong (2018) mentions the concept of "apartment choice" In the original sense, "choice" is an opportunity, right and power to choose, while "decision" is to reach a conclusion or resolution after consideration and does not imply the existence of alternatives “Decisions” are influenced by the analysis of facts and information Choosing can range from low-impact to high-impact However, unlike choice, decisions are made based on facts, not on different beliefs and perspectives Even so, a decision can also be part of a choice In Vietnam, the study of apartment buying intentions is important for real estate marketing and modern urban development Because consumers 'house buying” behavior is so complex, it is difficult to have a single model or theory that fully explains consumers' decisions to buy an apartment The process of forming an apartment purchase intention is a complicated process, so it is not possible to fully and accurately explain all the factors that affect the intention to buy an apartment of people living in the urban area Buying a house to live in is one of the most important economic decisions made by people of all income classes, so the buyer is often required to gather and synthesize a lot of information about the features, quality, facilities, design, price and surroundings (Le Va Xi, 2017) 1.5.2 TPB studies on factors affecting the intention to buy a house There are many studies on house buying intention and the factors that affect it A recent study by Sridharan (2020) shows that the reason for buying a house is the pride in owning property instead of renting someone else's, having no landlord and tax benefits Wijayaningtyas et al (2019) study the behavioral control awareness factors of the Y generation (millennials) for environmentally friendly buying intention Anlan Liu (2019) has a study of the impact of children on the household's willingness to buy a house In addition, the factors of family annual income and ownership of private cars have a negative effect, while the effect of an individual's age and educational level on buying intention is insufficient Lin et al (2018) studied the green housing buying intention among young Chinese on the basis of an extended theory of planned behavior (Theory of Planned Behavior - TPB) Incentives from the Government are considered the most important factor, followed by the attitude towards behavior and subjective norms of consumers Cognitive behavioral control is a factor that does not affect the green housing buying intention of young consumers In addition, subjective knowledge has an indirect effect through attitude toward behavior Attention to the environment also creates an indirect effect through attitudes toward behavior and subjective norms on the corresponding buying intention Therefore, the government is implied to play an important role in promoting green housing at this stage Chung et al (2018) studied the factors affecting buying intention of land assets in Greater Kuala Lumpur (KL), Malaysia The results have shown that there are positive relationships between attitudes, subjective norms, perceptions of behavioral control and finance to buying intention of land assets, while location and living space are not showing a similar relationship in the land market in Greater KL Mal et al (2018) studied the effect of feng shui factors on buying intention of the Chinese people (Malaysian Chinese - Chinese originating from Malaysia) According to the views on feng shui, potential buyers believe that feng shui arrangements can affect luck and property A survey questionnaire based on 24 criteria for feng shui was designed to use data collection from two different locations, namely Kuala Lumpur and Sandakan Demographic factors collected are gender, age, income, home owners, house buyers intention of buying or not, buying a house to stay or to invest The characteristics of the house studied in addition to feng shui are: location, house price, security, transportation system, public utilities, development potential and resale potential Houses in Sabah are built by investors based on economic factors rather than on the interests of consumers (Julius, 2016) Therefore, this study aims to understand consumer behavior towards house buying by using The Theory of Buyer Behavior Model with Perception and Output Perception includes housing attributes such as house characteristics, living space, distance and environment The output refers to the intention of buying The exogenous variables of the model is the superstition about numbers, superstition about ghosts, brand owners and financial investors The goal of this study is to examine the influence of these factors on buying intention Based on the responses of 235 working adults, the findings indicate that house, financial, distance, environmental characteristics and superstition about numbers have a significantly positive relationship with house buying intention Demographic criteria play an important role in determining people's characteristics (Fernando, 2016) Factors affecting buying intention were identified as housing characteristics, individual living space, finances, location and demographics Demographics were collected based on 07 criteria of age, religion, marital status, household size, occupation, and income In 2019, Mydhili et al Gathered a number of studies on the factors affecting the purchase of BDS There are a number of studies on house buying intention such as Mostofa (2016), Al-Nahdi (2015) and Tawfik (2015) Research by Mostofa et al investigated potential market factors in the attitude of real estate buyers in Bangladesh to identify opportunities for investors and traders in Realty The research of Al-Nahdi et al focused on behavioral factors affecting Saudi Arabia's real estate purchase and aimed to see how real estate buying intention is affected by attitude, how location, living space, public services, and reference groups are In 2015, Tawfik's doctoral thesis studied the effects of a number of variables in the role of independent variables (attitudes, subjective norms, perception of behavior control) and the role of moderator variables (location, public services) to the 10 dependent variable is the intention to purchase real estate in Jeddah, Saudi Arabia In addition, demographic characteristics such as age, gender, marital status, family size, citizenship, education, occupation, and monthly income are also control variables taken into research The theoretical basis of Tawfik's research is based on the Theory of Reasoned Action (TRA) and TPB theory Karunarathne et al (2015) argue that most housing market models are based on rational choice and behavior optimization, but not take into account observed behavior in the housing market Therefore, two structures were identified, namely the self image and the influence of the reference group The purpose of Polek's announcement (2014) is to study the importance of different reference groups - Group References - affecting house buying intention for families living in Thailand because houses are durable properties at high prices compared to The income of the people of this country The study applied Ajzen's famous theory of TPB (1991) Mohamad et al (2013) considered that there are a number of factors that determine the movement of the real estate market From the results of the analysis, the influencing factors have a significant relationship with real estate buying intention in Setia Alam, which are personal characteristics, knowledge, social class and reference group The study measures the intention to buy green and sustainable housing in Malaysia using an extended theory of behavioral models under the TPB plan (Teck Hong Tan, 2013) Results obtained showed that attitudes towards green houses, cognitive behavioral control and perceived identity (Perceived self-identity) have a positive impact on behavioral intention to buy that house In Vietnam, there are a number of authors studying this content Typically, Le Va Xi (2017) on the topic "Factors affecting the intention of Vietnamese consumers to buy apartments in medium-sized cities: A study in Hai Phong City" The author has focused on understanding main groups of factors: cultural changes; land issues for urban housing development; urbanization and population pressures; and finally the factors that provide value to the residents of the apartments - the value of condos - including the quality of construction design, services, environment and prices The research of Nguyen Thi Tung Phuong in 2018 is about choosing apartments in urban areas in Hanoi city The study showed two factors that influence the choice of buying apartments in urban areas of Hanoi city, namely "family phase" and "lifestyle" In addition, control variables added include: age, gender, occupation, income, purchase price per square meter of the apartment In addition, there are a number of studies by Vietnamese authors about house buying decisions As researched by Truong Thanh Hiep and colleagues in 2018 on the impact of fear of losses on homebuyer behavior The Doctoral thesis and the publications of Nguyen Tuan Anh et al (2017; 2018a, b, c) studied the impact of financial and non-financial factors on the choice of buying affordable housing (social housing) and low-cost commercial housing 1.6 Research gap of the thesis 1.6.1 Some conclusions about the research review Previous studies in the country and abroad presented above have helped the PhD student have a relatively general view of the factors affecting house buying intention or real estate buying intention (collectively referred to as house buying intention) A summary of these factors is presented in Appendix 01 of the thesis From the contents reviewed, the PhD student draws some conclusions as follows: - Most of the research on house buying intention and factors affecting the intention to buy a house is currently by foreign authors The main model used in the studies is TPB - The works have brought a lot of different factors to study the impact on buying intention of consumers But together, these factors are divided into three main groups: • The first group contains the factors in the basic model of TPB: Attitude, Subjective Norms, and perception of behavior control These factors have also been further developed or transformed by some studies: Self image (in reality, in imagination); Influence (information type, standard type); Knowledge (Subjective Knowledge); Personality etc These factors often act as independent variables affecting buying intention But there is also research (Lin et al., 2018) that these variables also act as intermediaries when previously influenced by a number of other factors • The second group includes factors that belong to the property (or real estate): Ownership / Legal procedure; Location ; Price; Finance / Development potential / Potential for resale; Environment; Living space (private); Public services (public utilities); Transportation system; Feng Shui; Superstition (numbers, ghosts) etc These factors mostly play an independent variable affecting purchasing intention However, in some studies of Tawfik (2014, 2015), there are a number of variables (location, public services) that play a role in regulating the relationship between the independent and dependent variables • The third group is the list of buyers' personal/demographic characteristics: gender; age; job; field of work; work status; marital status; monthly income; educational background; number of family members; environmental concern; social class; personal characteristics; religion; nationality; civil rights; current type of housing; whether he/she owning a car, etc These are the factors that always play the role of control variables Only the citizenship factor in Tawfik's study (2015b) was analyzed as a moderator variable on the relationship between the dependent and independent variables • The fourth group is other factors such as investors (brand, prestige), government incentives, urbanization, culture etc These variables often play the role of independent variables 1.6.2 Research gap Based on the conclusions of the research situation, the PhD student determines the gap for the thesis as follow: - First, the gap about the research object: + Housing in urban areas has a price of 3-5 billion VND The dissertation studies a group of people with house buying intention in urban areas at a price of 3-5 billion VND to be able to control factors of price and income + Home buyers are middle class Corresponding to the ability to buy houses at prices from to billion, according to experts, buyers are usually middle-class people According to the 11 12 concept of World Bank (2015), the global middle class is defined as those with a living standard higher than 15 USD / person / day, equivalent to 10.6 million VND / person / month (exchange rate in 2020) - Second, the gaps in influencing factors: the study focuses on evaluating two main factors, which are location and legality, in comparison with the three basic factors of the TPB model, which are attitude, subjective norms, and perception of behavioral control - Third, the gap of analytical content: the dissertation analyzes the difference in the influence level of factors on the intention to buy two types of housing in urban areas, namely apartments and private houses The identified influencing factors include 03 factors in the TPB model: attitude, subjective standards, and perception of behavior control; along with 02 factors have been established as in the content gaps as legal status and location But there are two main types of housing in urban areas, which are apartments and private houses, so the impact of these factors on the two groups of customers who intend to buy these two types of houses will also be different Therefore, the thesis will focus on clarifying this difference - Last, the gaps in research space and time: housing research in urban areas of Vietnam was conducted during the period from 2016 to 2020, collected primary data in 2019-2020 and Reported results in 2020 13 CHAPTER HYPOTHESIS AND RESEARCH METHODS 2.1 Overview of the study area 2.1.1 Vietnam urban area Circular 34/2009 / TT-BXD dated September 30, 2009 of the Ministry of Construction detailing a number of contents of Decree 42/2009 / ND-CP, dated May 7, 2009 of the Government on the for type of urban area, "Vietnamese urban centers are urban centers, including cities, towns and townships recognized by decision-making authorities in Vietnam" Although districts and communes in Vietnam are the administrative level in rural areas, in special cases, if the size and the nature of urbanization are met, the district can be recognized as urban, such as Prime Minister decided to recognize Phu Quoc island district as a grade II urban area, the Ministry of Construction decided to recognize the expanded Tinh Gia town area of Tinh Gia district (Thanh Hoa province) as grade III urban area (the entire district Tinh Gia is a grade IV urban area, Duy Tien district (Ha Nam) or Tinh Bien district (An Giang) is a grade IV urban area Some communes in Vietnam that are district towns preparing to be upgraded to towns may also be recognized as Grade V urban area by the provincial government 2.1.2 Housing in urban areas Article 3, Housing Law No 65/2014 / QH13 of the National Assembly of the Socialist Republic of Vietnam provides the following concepts: - House is a construction work for the purpose of staying and serving daily needs of households and individuals - Private house is a type of house that is defined on a separate parcel of land under the lawful use rights of organizations, households and individuals, including villas, attached houses and independent houses - Apartment building is a building with or more floors, with many apartments, common aisles, stairs, a private area, a shared area and a system of infrastructure works used for families, individuals and organizations, including apartments built for residential purposes and apartments built for mixed use purposes containing residential and business purposes 2.1.3 Characteristics of housing in urban areas As mentioned above, houses in urban areas of Vietnam is also a type of real estate Therefore, they have the basic characteristics such as immovability, lifetime, additional costs, products and services, and future value Besides, according to the Hoang Van Cuong (2017), real estate in general and houses in particular have the following characteristics: Position stability; Sustainability; Individuality and Scarcity; Value; Adaptability; Mutual influence; Habits, Tastes and Psychology; Government of State laws and policies For 02 types of houses selected for research in the thesis, which are "apartments" and "private houses", there are a number of distinctive features to mention such as house purchase price, apartment value, payment , access to credit, house ownership certificate, use right, living standards, location if the there is similarity in price, utilities, living space, atmosphere, vision, security, buyers 2.2 Scale of factors 14 2.2.1 Buy Intention Factor The intention to buy a house in Vietnamese urban areas is the level of consumer willingness to choose and buy one of two typical housing types, Apartment or Private House in urban areas of Vietnam with the main purpose of living and able to serve other needs that are not prohibited by law such as trading (buying for resale) renting, giving, etc 2.2.2 The Attitude Factor Attitude refers to the extent to which a person has a favorable or negative rating relative to an object, person or event (Robbins et al., 2015) It consists of three components: perception, emotion and behavior Studies have shown that there is a significant impact between attitudes and intention to buy a house (Kamal et al., 2016; Al-Nahdi et al., 2015; Phungwong, 2010; Chung et al., 2018) 2.2.3 Subjective Norms Factor Subjective norms are the normative beliefs of an individual influenced by others such as family members who think an individual should perform a particular behavior (Rivis and Sheeran, 2003) Many studies show that the reference group has a strong positive effect on buying intention (Panthura, 2011; Numraktrakul et al., 2012; Razak et al., 2013) For people planning to buy a house, their reference group is usually family and close friends with real estate knowledge 2.2.4 Perception of behavior control factor Perception of behavior control is defined as the degree to which the person controls internal and external factors that facilitate or prevent the behavior (Han and Kim, 2010) This factor has been shown by a number of studies to have a positive effect on behavioral intentions (Han and Kim, 2010; Teo and Lee, 2010; Omar et al., 2012) as well as buying a house (Phungwong , 2010; Chung et al., 2018) However, Al-Nahdi et al (2015), Tawfik et al (2014, 2015, 2015abc) found that perception of behavior control has no effect on customers who intend to buy real estate 2.2.5 Location factor Location is a factor related to accessibility to shopping malls or retailers, public transport, schools, hospitals or close to work as it is not only convenient but also effective to work and sending children to school According to many studies, this factor has a positive impact on buying intentions of consumers (Nasar and Manoj, 2015; Fernandez, 2017; Abdullah et al, 2012; Al-Nahdi et al, 2015; Tawfik, 2014, 2015) 2.2.6 Legal factors The legality of the house relates to the law, to ensure the legal implementation of sale or transactions, limit risks, as well as to protect their rights Some early studies reinforcing the positive relationship between legal factors and intention to buy houses include Ranthilaka (2010), Sridharan (2020), Dang Hung Vo (2018) 2.2.7 Demographic characteristics of house buyers Buyers’ demographics are the internal factors involved in decision making (Mateja & Irena, 2009) Demographic characteristics include individual factors by gender, age, educational status, marital status, career, number of family members, children and real estate To suit the thesis, the demographic characteristics selected for analysis include: gender, age, main occupation, education level, family size From the determination in the above factors, the scale is inherited and built including: From the determination in the above factors, the scale is inherited and built including: 15 Scale of intention I will probably buy this type of house I will try to buy this type of house I want to buy this type of house I make plans to buy this type of house I intend to buy this type of house in the future I will continue to buy this type of house in the future Attitude scale Source Sridharan (2020); Wijayaningtyas et al (2019); Anlan Liu (2019); Lin et la (2018); Chung et al (2018); Julius (2016); Tawfik (2014; 2015; 2015abc); Karunarathne (2015); Polek (2014); Mohamad (2013); Teck (2013) Source Buying this type of house is a beneficial decision Buying this type of house is a good decision Buying this type of house is a wise decision Buying this type of house is an admirable decision Mydhili (2019); Chung et al 2018); Karunarathne (2015); Tawfik (2014; 2015; 2015abc); Polek (2014); Teck (2013) Subjective norms scale Source My family thinks that I should choose to buy this type of house My family wants me to choose to buy this type of house My family agrees to let me choose this type of home My family thinks that choosing this type of house is a wise decision Chung et al (2018); Karunarathne (2015); Tawfik (2014; 2015; 2015abc) Cognitive behavioral control scale I have enough opportunities to make a decision to buy this type of house I have enough time to make a decision to buy this type of house I have enough money to buy this type of house I have enough knowledge and skills about this type of house to make my own buying decision I complete control over this type of house Source Scale of house location Source 16 Chung et al (2018); Karunarathne (2015); Tawfik (2014; 2015; 2015abc); Polek (2014); Mohamad (2013); Teck (2013) Scale of intention The location of this type of house near public transport is important The location of this type of house near workplace is important The location of this type of house near school is important The location of this type of house near shopping centers is important The location of this type of house near amusement parks is important The location of this type of house near relatives, friends is important The location of this type of house near grocery / retail stores is important Legality scale Ensuring immediate and full use of infrastructure and utilities of this type of house is important Ensuring the freedom of living, repairing and renovating this type of house is important Ensuring long-term ownership of this type of house is important Ensuring no dispute over the usable space of this type of home is important Ensuring multi-purpose use rights for this type of house (for living, for sale, for rent, etc.) is important Ensuring the completeness and legality of legal documents for this type of house (construction permit, sale contract, land use rights certificate / house ownership certificate, etc.) is important 2.3 Research model and hypothesis 17 Source Mydhili (2019); Chung et al (2018); Fernando (2016); Julius (2016); Tawfik (2014; 2015; 2015abc); Mimoza (2013) Source - H1: Attitude has a positive influence on intention to buy houses in urban areas in Vietnam - H2: Subjective norms have a positive effect on intention to buy houses in urban areas in Vietnam - H3: Perceptions of behavior control that positively affect home buyers' intention to buy houses in urban areas in Vietnam - H4: Location has a positive influence on house buying intention in urban areas in Vietnam - H5: Legality has a positive effect on house buying intention in urban areas in Vietnam Figure Model of research on factors influence the intention of people to buy houses in urban areas in Vietnam Source: Ajen (1991, 2012) and author (2019) Sridharan (2020); Ranthilaka (2010); Law on housing 2014; Circulars 31/2016/TT-BXD; Circulars 10/2013/TT-BXD; Author and experts proposal (2020) _ CHAPTER RESEARCH METHODS 3.1 Research design The thesis is designed to research the questioning and research objectives of factors affecting the intention to buy houses of people in urban areas of Vietnam In the overall process, financial research works have been done for different target groups such as homebuyers, developers, and policy makers 3.2 Research methods - The research approach of the thesis consists of a combination of deductive and inductive methods - Data collection methods: + Secondary data was collected through sources of conferences, topics, thesis, research works, books, newspapers, internet domestically and internationally + Primary data was collected through methods: in-depth interviews, surveys by questionnaires - Data analysis method: 18 + Quantitative methods include the following techniques: Testing scales (Cronbach's Alpha coefficient and total correlation factor); Multivariate regression analysis (testing the suitability of the model, testing relationships) and T-test (comparing between groups) Figure Research design for the thesis Source: Author (2018) CHAPTER RESULTS OF THE RESEARCH ON FACTORS AFFECTING THE INTENTION TO BUY HOUSES OF VIETNAMESE PEOPLE IN URBAN AREAS 4.1 Survey sample statistics The number of valid votes used in the analysis is 427, including 232 votes of customers with house buying intention and 195 votes of customers with apartment buying intention These votes in terms of the total percentage as well as the percentage of each customer group, all meet the minimum sample size But these people are mostly men, from 40 to 60 years old, business owners or self-employed, university educated and living in multi-generational families There is only one big difference when it comes to each type of housing at this price level, which is the gender characteristic, when most of the people have apartment buying intention are women, while the buyers of private houses are mostly men 4.2 Sample analysis 19 4.2.1 Evaluate the scales The scales of AT, SN, PBC, L, PL all meet the testing criteria: Cronbach Alpha coefficients must (≥ 0.7); Total correlation coefficient (≥ 0.3); Cronbach’s Alpha coefficient when removing this variable is smaller than the current Cronbach’s Alpha coefficient Analysis of discoverable factors results in eliminating 01 scale in Cognitive variables The remaining scales are suitable for analysis 4.2.2 Regression analysis of factors affecting on the buying intention of people in urban areas of Vietnam The regression analysis to test the influence of factors on buying intention in urban areas of Vietnam is divided into two groups: one is apartment buying intention and the other is private house buying intention In each group, the regression analysis will be performed in combination with each group of variables: the group of 05 demographic characteristics variables (gender, age, occupation, education level, family size); variables of TPB model (attitudes, subjective norms, perception of behavior control); group variables characteristics of the house (location, legality) The analysis results of the models are as follows: Model/Type of house 232 private 195 house apartment Model Sig .964 061 -The test models of factors affecting on the buying GENDER -.026 022 intention of people in AGE -.003 -.088 urban areas of Vietnam in OCCUPATION 023 201 Table 3.4 above have EDUCATION 053 -.025 shown that: LEVEL -When there are no factors FAMILY SIZE -.011 073 of buyer psychology Model Sig .000 000 (according to TPB), GENDER -.038 009 housing characteristics, AGE 016 -.059 the model of the OCCUPATION 009 107 demographic EDUCATION -.006 001 characteristics of people is LEVEL not statistically significant FAMILY SIZE -.009 006 That is, there is not ATTITUDE 315*** 352*** enough evidence to SUBJECTIVE 026 007 determine that NORMS demographic PERCEIVED characteristics with or BEHAVIOURAL 529*** 451*** without influence on CONTROL buying intention in urban Model Sig .000 000 areas of Vietnam GENDER 004 029 -Model including the AGE 034 -.026 demographic and OCCUPATION -.009 095* 20 However, there is a slight difference in demographic characteristics between two groups of customers buying houses and apartments, specifically: + Apartments buying intention are further affected by the characteristics of people's occupation, while 04 characteristics of gender, age, education and family size not show the influence + Private house buying intention continues to be unaffected by any buyer demographic characteristics - Model with 03 groups of factors including: demographic characteristics (05 factors), home buyer psychology (03 factors according to TPB) and house characteristics (02 factors are home position and calculation juridical) The value of p-value shows that the model is statistically significant and of which 04 out of 10 factors affecting buying intention in urban areas of Vietnam are consumers' attitudes and perceptions control the behavior, location and legality of the home The remaining factors have no influence - Similar results for the influencing factors in model compared to model when demographic characteristics are removed from the model There are further 4/5 factors that influence buying intention in urban areas of Vietnam consumers are attitudes, awareness control behavior, home location and legality of the home Particularly subjective norms factors not show the influence on buying intention This result is consistent with the test result of model - Thus, for the types of condominiums or private houses at the price of to billion VND in urban areas of Vietnam, buying intention of these two groups of customers has some similarities and differences as follows: Similarity: - Attitude and perceived behavioural control are 02 variables that belong to individual consumers, affecting their buying intention - The family, friends, relatives (subjective norms) of consumers have no effect on their buying intention - Location and legality are 02 variables of the characteristics of the house that affect the apartment buying intention of consumers, of which the legality factor has the strongest impact Difference: - While the location of the house is the second most powerful variable for buying intention in the apartment building, the new perceived behavioural control is the second most important variable in the consumer buying intention - Two factors that affect each other equally and at least to apartment buying intention are Attitude and Perceived Behavioral Control; the two factors that have the least (and equally equal) effect on private home buying intention are Attitude and Location - In apartment buying intention, the legal impact is 1.3 times higher than the variable Location of the house; In private housing, the ratio is higher, reaching 1.68 times Regression equation according to the standardized Beta coefficient: BIap = 0,392 + 0,289LE + 0,221L + 0,171AT + 0,171PBC (1’) BIph = 0,301 LE + 0,199 PBC + 0,179AT + 0,179 L (2’) 21 22 Model/Type of house Model Model EDUCATION LEVEL FAMILY SIZE ATTITUDE SUBJECTIVE NORMS PERCEIVED BEHAVIOURAL CONTROL LOCATION Sig GENDER AGE OCCUPATION EDUCATION LEVEL FAMILY SIZE ATTITUDE SUBJECTIVE NORMS PERCEIVED BEHAVIOURAL CONTROL LOCATION THE LEGALITY Sig ATTITUDE SUBJECTIVE NORMS PERCEIVED BEHAVIOURAL CONTROL LOCATION THE LEGALITY 232 private 195 house apartment -.001 -.005 005 277*** -.020 251*** 048 015 293*** 228*** 424*** 000 -.031 043 -.011 546*** 000 036 -.008 061 -.020 -.018 -.026 247*** 010 233*** 043 026 290*** 242*** 272*** 419*** 000 249*** 358*** 394*** 000 242*** 038 021 283*** 249*** 277*** 412*** 356*** 399*** psychological factors of buyers (according to TPB) is statistically significant A number of factors in the model have shown consumers' influence on buying intetion in urban areas, namely attitudes and perceived of behavior control subjective norms and demographic characteristics are not influential - When considering the location factors in model 3, the model also shows statistically significant Sig values Position along with attitude and awareness of behavior control are 03 factors that influence buying intention in urban areas of Vietnam of consumers subjective norms continue to show no influence Overall, it can be seen that Legality and Location of houses are two factors that people with apartments buying intention pay more attention to And for people with private house buying intention is mainly concerned with the legality of the house 4.2.3 Regression analysis of differences in the buying intention in Vietnamese urban areas of homebuyers with different demographic characteristics factors of the population: gender, age, main occupation, education level, household size In which: - Gender: divided into 02 groups: Male and Female - Age: divided into 03 groups: Under 40 (cumulative age); From 40 to under 60 (independent age) and From 60 and above (retired) - Main occupation: divided into 04 groups: officers; staff at organizations and businesses; self-employed, business owners and others - Education level: divided into 03 groups as High School Graduation (high school) or lower; college Graduate; and after graduation - Family size: divided into 02 groups: Nuclear Family (with generations or less) and Extended family (with generations or more) Regression analysis by two groups of customers with apartment buying intention and customers with private house buying intention to determine whether in each customer group, the differences in demographic characteristics make house buying intention become different or not 02 variables of Gender and Family size will be tested Independently Sample T-test, the remaining variables will be used one way ANOVA method The results of data analysis show that only people with apartment buying intention with different occupations are statistically significant Sig values Specifically, the group of self-employed people (self-employed, business owners) and groups of people doing other jobs (freelancers, housewives, artists, etc.) has higher apartment buying intention than the group of Officers 4.3 Assessment of factors affecting the buying intention of people in urban areas of Vietnam - Firstly, from the research model with 05 factors capable of affecting the intention of people in urban areas of Vietnam, the actual survey results have shown that only 4/5 of these factors are affecting buying intention, are AT, PBC, L, PL - Secondly, the degree of influence of the factors on house buying intention of 02 groups of customers buying apartments and own houses is similar and different The same is the factor PL has the most influence and AT has the least influence The difference is that for private houses, PBC ranks second, followed by L, and vice versa - Thirdly, for apartments buying intention, self-employed people (self-employed, business owners) and groups of people who other jobs (freelancers, housewives, artists, etc.) have higher buying intention than those who are officers 23 CHAPTER SOME PROVISIONS RELATED TO FACTORS AFFECTING THE HOUSE BUYING INTENTION OF VIETNAMESE PEOPLE IN URBAN AREAS 5.1 Forecast of housing situation in urban areas of VietNam in the upcoming period 5.1.1 Orientations, prospects for urbanization, real estate market and land transfer - View and context of Vietnam's economic development in the period 2020-2030 and vision to 2045 + Vietnam to become a developed country + A country with high income and diverse income sources + Reach the economy of an industrialized country, overcoming the middle income trap by 2030 - Orientation and prospects for urbanization, real estate market and land transition + Focus on industrialization, modernization and urbanization + By 2030, over 50% of the population of Vietnam is expected to live in urban areas + Favorable legal system for land transition 5.1.2 Comment on Vietnam’s real estate market trends in 2019-2020 and in the following years, many organizations and experts share the same opinion, the market is affected by the following main development trends: - Firstly, the legality for the real estate market is getting better in the direction of stable and sustainable development - Second, affordable housing is getting better intention - Thirdly, small and micro flats are favored - The fourth is smart cities trend - The Fifth is the explosion of commercial real estate Entering the year of 2021, the real estate market has a transition to the following five trends: -The first trend is "urban in urban" or "integrated real estate" is often used for largescale projects - The second trend noted is working remotely - Another trend is that e-commerce is promoting logistics and warehousing, becoming a great driving force for the market - The fact that businesses still keep the "green" and sustainable direction is the 4th leading trend in the real estate market in 2021 - The fifth trend identified is the fact that investors are paying attention to the healthcare industry 5.2 Some issues about urban areas and housing situation in urban areas of Vietnam 5.2.1 Development strategy of urban area and urban housing In the study of Tran Minh Tung (2019), new urban areas are a type of "dual development" projects: urban space development and urban housing development New urban projects are being developed more and more in urban areas, from the first generation established by 24 state-owned enterprises (to be sure to meet expectations and test new strategies) ) to the next generations to be expanded, allowing foreign investors or domestic private enterprises to participate The increase in density in new urban space areas, often located on the suburban, seen as a consequence and manifestation of the urbanization process through specific development tools, in which a new urban area project is a way to decipher the issues related to the "(re) urban creation" in Vietnam (Tran Minh Tung, 2019) 5.2.2 Policies on housing in urban areas of Vietnam Only in Hanoi and Ho Chi Minh City, each year the population increases automatically from 500,000 to 600,000 people, the pressure on housing is enormous The rapid population growth makes urban land become increasingly scarce, real estate prices soar To serve the needs of social economic development, the urban government must speed up the urbanization rate to have land funds for infrastructure investment But as urbanization expands, a large number of people are moving from rural to urban areas, so housing problems become more urgent (Tran Tuan Anh, 2020) Being aware of shortcomings, the Government has directed the concerned ministries and branches to take short, medium and long-term solutions 5.3 Some suggestions on factors that influence the buying intention in urban areas of Vietnam 5.3.1 Recommendations for buyers Based on the aforementioned analysis results, it can be seen that people with apartments buying intention or private houses at the price of to billion are mostly people over 40 years old; self-employed / owner of a business or other occupations (freelancer, housewife, artist) and live in multi-generational families There is only one gender difference when women often have buying intention to buy apartments more and men prefer to buy houses Therefore, if the buyer has such characteristics, it is advisable to issue buying decision for the corresponding type of house, which will ensure convenience factors - Focusing on the legality factor through: Selecting reputable investors (such as Vingroup, Norveland, Dat Xanh Group, Nam Long, etc.); Interested in the certificate of land use rights, construction permits, tax obligations of investors; Notice the terms of the house purchase contract - Location of the house: Priority to the center if you want to travel conveniently, or further if you want to enjoy the fresh air People with private home buying intentions rated the "home position" factor as the least important Because there is a current shift from downtown apartments to suburban villas for the same price And this is also a future trend forecasted of the real estate market - For the two factors: Attitude and perceived behavioural control, for Vietnamese these factors have become the goals of life, so just need to consider more about the factors of investment or enjoyment, accumulation when choosing to buy a house - Regarding demographic characteristics, it can be seen that the majority of people who buy apartments or houses at the price of to billion in Vietnamese urban areas are over 40 years old, have good job and education For consumers, this is also a reference for more information because except for families with conditional or early success, the remaining who want to buy houses at this price range should also consider about time of purchase in life to make it more fully prepared Women tend to buy apartments and men tend to buy a house is also a point for consumers to consider when having their own plans about buying a house 5.3.2 Proposals for investors in urban areas According to the Law, the investor of a construction project is an agency, organization or individual that owns capital, borrows capital or is assigned to directly manage, use capital to carry out construction investment activities Investor is the person who is fully responsible before the person determining investment and the law on the quality, progress, cost of investment capital and other provisions of law Thus, the construction investor is the one who decides the "destiny" of the projects that they invest through selling the housing products that they supply to the market or not And in order to become effective construction investors, understanding the trend of the real estate market and understanding customers is something that any investor cannot ignore In the general trend, mid-end real estate as in the research area is no longer an advantage when the market demand is focused on small and micro apartments However, the move towards smart cities will be a new way of developing these mid-range products In addition, the explosion of technology with the 4.0 revolution will also help to invest in midrange apartments with different bright spots In order to develop in such a context, investors need to understand themselves (their real estate products), understand the market (market trends related to your products) and especially understand the customer (especially the target customers being pointed out in this study) Research of the thesis also shows that, for each different customer, the interest in the factors affecting home buying intention is also different If the people with buying intention mainly focus on the legality issue, the people with apartment buying intention nowadays, cares about the location of the house and the legal requirements are also being paid attention Therefore, when investing in a construction project, investors need to pay attention to the following issues: - Firstly, understand the resources of the business and the type of real estate products that the business provides: + Have clear perception of real estate; + Invest in real estate by capacity and opportunity; + Proactive solutions to capital sources for investors; + Build credibility for businesses and products, Understand the real estate products that businesses provide - Secondly, understand the market and the ongoing trends related to real estate products More than half of the world's population currently lives in cities and metropolitan areas, and this percentage is showing signs of continued increase The rapid pace of urbanization worries environmental experts, warning that the planet's future will depend largely on the management of urban planners The 4th Industrial Revolution (Revolution 4.0) with the development of the Internet of Things, cloud computing, big data analytics tools, artificial intelligence has been strongly impacting the urban process visualization 25 26 - The last and also the most important, is to understand your target customers + Meet the legitimate needs of the legal buyers + Select of real estate projects in urban areas of Vietnam shows those projects have convenient locations, the ability to connect with public utilities such as kindergartens, schools, hospitals, area for playing and physical training and sports; + Understand customers' attitudes and perceptions about buying houses in urban areas 5.3.3 Proposals to local State management agencies - With urban planning and land management: Building a comprehensive / integrated urban development strategy; Other market creation measures to support the land supply - For companies investing in apartment building (construction company): Implementing public-private partnership (PPP) program to provide affordable housing; Understand the possibility of applying Housing Development Privileges; Other market creation methods to support home development companies - With Housing Administration: Institutional strengthening; Fundamental elements of housing sector governance; Other measures to strengthen governance of the housing sector CONCLUSION The thesis on the topic "Factors affecting the intention to buy houses of people in urban areas of Vietnam" is presented in three main sections: introduction, content, conclusion The content is structured with 05 chapters including Overview of the research and research model; Hypotheses and research models; Research Methods; Survey results; and a number of recommendations for stakeholders, home buying intention people, investors, relevant agencies, and policy makers Chapter on research overview and research model conducted general research on consumer behavior, housing products Models of human behavior, consumer behavior according to different approaches are synthesized and analyzed, from which to find the appropriate model that is often used in research on house buying intention: the Theory of planned behavioral (TPB) In addition, some conclusions about the research situation and the gap for the thesis are given at the end of the chapter Chapter is the construction of hypothesis and research model for the thesis After finding the research gaps, the TPB model is selected to be used as a basis for the study Some overview of the research area such as the concept of Vietnamese urban area, concepts and characteristics of housing in urban areas of Vietnam have been synthesized to identify the appropriate factors for the research model of the thesis Suitable for the middle class who intend to buy an apartment or private house in urban areas in Vietnam with the price of 3-5 billion VND, two Factors that are added to the research model are Legality and Location In addition, 03 psychological and emotional factors of buyers are attitude towards behavior, subjective norms, awareness of behavior control are inherited In addition, 05 27 demographic characteristics that are most suitable for the customer groups studied in the thesis were also selected to include in the analysis, including: Gender, Age, Occupation, Education level and Family size In Chapter of the research method, the author presented the research design in accordance with the object and scope of the research The research process consists of 12 overall steps from problem setting and research goals to final discussion and recommendations Secondary and primary data collection methods; as well as qualitative quantitative analysis methods are also presented in detail for each part applied in the thesis The analysis of 427 valid questionnaires presented in chapter showed that only 4/5 factors in the model had a statistically significant impact on the home buying intention of middle-class customers, plan to buy one of two types of apartment buildings or private houses in urban areas in Vietnam with the price from to billion The factor that has the strongest impact on both groups of customers is legality For customers with apartment buying intention, the second important factor is the house position, followed by 02 attitude factors and awareness of behavior control In contrast, for customers with private home buying intention, the second is the Perceived Behavioral Control factor, 02 Attitudes and Location ranked last Particularly, subjective norms factors have no impact on the home buying intention of the two customer groups studied The majority of buyers participating in the survey are those over 40 years old, self-employed / self-employed or in other occupations, with a university or higher education and living in a large family In particular, only the group of customers with apartment buying intention has a difference in career when buying intention of other professionals (artists, freelancers, housewives) and business owners / self-employed are higher than apartment buying intention buildings of officers The conclusions drawn the assessments based on the factors of impact and characteristics of the people, together with the macroeconomic factors are the end of the chapter analyzing this situation In Chapter 5, the author mentions some predictions about housing situation in urban areas of Vietnam from which to make some recommendations related to the factors affecting buying intention of the customer group Proposals are made for each consumer who has apartments buying intention or private houses in urban areas of Vietnam; or developers of urban areas The final proposals are for central and local state management agencies to effectively use the dissertation's research results to be able to offer investment options, purchase and sale of housing products in the area urban in the most appropriate way Buying a house is an important decision not only for buyers but also for relevant people such as families, sellers and the general development of society Although studies on buying intention have also been carried out quite extensively abroad, the number of constructions is still modest in Vietnam Another feature is that the real estate customer data is still a "confidential" form, so the implementation process of NCS has encountered many difficulties Although with the limitations of capacity and time, the thesis will certainly not be avoided The PhD student looks forward to receiving valuable contributions from teachers and colleagues to improve the thesis 28 LIST OF PUBLISHED WORKS BY AUTHOR 29 Tran Xuan Luong (2019), "Factors influencing decisions of people in Vietnam's urban areas", Asia Pacific Economic Review, No 548, September 2019, pp 32- 34 Tran Xuan Luong (2019), "Analysis of some factors affecting the decision of apartment buyers in Hanoi urban areas", Asia Pacific Economic Review, No 550, October / 2019, pp 29-31 Tran Xuan Luong (2019), "Analysis of some factors affecting decisions of people attached to land in urban areas of Vietnam", Scientific Workshop "Real Estate Market - Perspective of researchers' in October 2019 organized by Vietnam Real Estate Association and Asia Pacific Economic Review Tran Xuan Luong, Pham Van Linh, Pham Lan Huong (2020), "Factors affecting the intention to buy apartments in urban areas of Vietnam", Journal of Industry and Trade, Ministry of Industry and Trade, monthly issue 5/2020 30 ... analysis of factors affecting on the buying intention of people in urban areas of Vietnam The regression analysis to test the influence of factors on buying intention in urban areas of Vietnam. .. assessing the influence of different factors on housing buying intention in urban areas of Vietnam In particular: comparing the differences in the influence of factors on the buying intention of. .. buying intention On that basis, determine the theoretical basis for the research of the thesis; - Build a model to study the factors affecting intention to buy houses of people in urban areas of