Question 3: How does the degree and dimension of each factor affect to the selling price of a high-class apartment on the Hanoi real estate market?. Investors identify the majority of f
Trang 11 Reasons for choosing topics
The trend of population growth in big cities is increasing Demand for affordable housing is
always scarce for the majority of residents More and more wealthy customers in society need
to upgrade the quality of accommodation Many businessmen from abroad to work and live
in Vietnam need to choose a place with many facilities, beautiful environment, diverse
services and good social security such as high-end apartments High-end apartment building
has many different uses; Combining between the purpose of living, entertainment, business
and office with high density of use this type of multi-family high-rise housing meets the
tastes and needs of enjoying the quality of life for rich customers
- A freely developed market lacks state control;
- There are no criteria to classify luxury apartments;
- The selling price and service charge are too high, not commensurate with the quality;
- Investors lack market information;
-The selling price and administration and service fees are unreasonably high;
Poor quality of condominium management and service provision;
-The press published many unfavorable images for the project and investors;
-State policy inconsistent, or changeable;
-Does not locate the target customer segment;
Poor construction quality; electromechanical equipment - fire prevention and fighting
associated with the project which can easily fail; Rapid technical infrastructure overloaded ;
- The investor is slow progress, does not hand over the pink book or red book to customers,
encroaching on the common living space of residents
- Investors rate their own condominiums The market is disturbed in advertising, marketing,
PR so it is difficult to determine which projects are of approximate quality to the high-end
apartment segment? many projects intentionally advertise false in order to deceive customers
Therefore, the topic "Factors affecting to the selling price of luxury apartments -
Research in Hanoi" is chosen as the subject of the doctoral thesis
2 Research objectives and research questions
- Systematize the basic theoretical issues about the selling price of high-end apartments and factors affecting to the selling price of high-end apartments
+ Identify and select the most basic factors that affect to the selling price of apartment building On that basis, building models and research hypotheses reflect the factors affecting
to the selling price of apartment buildings in Hanoi city
+ Measuring and assessing the influence of factors (independent variables) in the model on the selling price of high-end apartments (the dependent variable)
+ Determining the level and importance of each factor to the selling price of apartment buildings in Hanoi city
+ Clarifying the difference in the impact level of factors according to the specific characteristics of the customer segment
+ Proposing implied management solutions for real estate business investors in order
to scientifically determine high-end apartment selling prices, in line with reality and achieve effective business goals
Research questions Question 1: Why is it necessary to study the factors affecting to the selling price of a
high-end apartment?
Question 2: What major factors are the selling price of a high-end apartment building on the
Hanoi market? How important are those factors?
Question 3: How does the degree and dimension of each factor affect to the selling price of a
high-class apartment on the Hanoi real estate market?
Question 4: How do real estate investors need to develop a high-end apartment price
strategy?
3 Object and scope of the study a- Research object
The thesis focuses on the factors affecting to the selling price of high-end apartments
Trang 2Factors affects to the selling price of luxury apartments In fact, the purpose of the
investor is to determine the reasonable selling price However, the dissertation uses the price
survey method, so it can be considered as the perception (of the respondents) about the
selling price of luxury apartments when asked and interviewed
The author only focuses on the group of factors associated with the apartment,
including: 1 / Characteristics of a high-end apartment (associated with physical variables of a
high-end apartment); 2 / the location of the building and the location of the apartment
building; 3 / Ambient; 4 / Service quality (building management) and 5 / Investor's brand
+ Scope of research:
High-end apartment segment in Hanoi city
+ Range of time:
Secondary data from 2010 to 2018, primary data to be collected in 2019 and solution to 2025
4 Research process
The research process of the thesis includes 2 steps, preliminary and official research The
author uses both qualitative research methods and quantitative research methods
5 New contributions of the topic
The scientific research results of the thesis over the past 5 years are useful documents
that can be used to refer to many subjects related to the real estate market in general and the
high-end apartment segment in particular, such as:
5.1 Investors identify the majority of factors affecting the real estate market; to property
value; value to use; real estate prices in general and luxury apartment prices in particular;
5.2.Customers are aware of common defects from investors and objective factors affecting to
the marginal price range when buying and quality of high-end apartments; So, there is a basis
to negotiate with investors about: 1 / selling price; 2 / product quality and 3 / legal;
5.3 Synthesize negative consequences causing losses to the Investor - Customers and State
management agencies due to errors often from the investor (subjective) and from other
objective factors; From there, limit the negative factors and increase the derivative values for
high-end apartments;
effectively neutralize local defects in the real estate market in general and the high-end apartment segment in particular;
6 Thesis structure
The thesis is structured with 5 chapters, as follows:
Chapter 1: Introduction Chapter 2: Research overview and theoretical basis of factors affecting the selling price of
luxury apartments
Chapter 3: Research context and research methods Chapter 4: Research results on factors affecting the selling price of luxury apartments Chapter 5: Solutions and recommendations
CHAPTER 2: OVERVIEW OF RESEARCH AND BASIS THEORY OF FACTORS AFFECTING TO HIGH-CLASS APARTMENT PRICE
2.1 Research overview of prices and factors affecting to real estate prices 2.1.1 Scientific works published abroad
Scientific papers published abroad mainly focus on the following aspects: (i) price and valuation; (ii) behaviors' consumer buying behavior; (iii) values and factors affecting to property values, (iv) factors affecting to real estate and housing prices
Price and valuation
Andreas, (2008) presents five factors that are hindering the implementation of a value-based pricing strategy Nigel & partners (2010) show that the need for managers to take
a more strategic view of prices and test the possibility of price increases, especially in post-crisis situations Stephan & Andreas (2013) find a positive relationship between value-based pricing (not competitive pricing) and corporate performance
Studies using Hedonic models such as Griliches (1971), Thibodeau and Malpezzi (1980) According to Malpezzi (2003), during the development process, the housing market
is one of the widely used the model valuation of Hedonic ; because housing is a heterogeneous commodity; At the same time, consumers' demand is also different such as: an
Trang 3that constitute the overall value of the whole apartment
The house buying behavior of consumers
The studies of Richards (1996), Gibler& Nelson (1998), Daly et al (2003), Tan
(2011), Iman et al (2012), Rong (2013) mentioned the behavior of customers emotions,
perceptions, and practices related to asset value (policy makers, investors, speculators, buyers
and users)
Value and factors affecting to property value
Value is the core of the economy and the concept of market value forms the main
basis of real estate valuation (Ozdileksa et al., 2002) According to Roulac (2007),
theoretically, the property value is determined by the utility Whereby people are paying for
the right to use the property
Factors affecting to property value have been studied by many authors, such as:
Olayinka et al (1997): Structural variables, project surroundings, community characteristics,
location characteristics, characteristics environmental score, time characteristics; Adair et al
(1996): external and internal factors, then grouped into four main groups including asset
variables, distance variables, environmental variables and financial variables; Roulac (2007):
brand, beauty and utility; Lorenz et al (2011): Environmental value, social value, cultural
value, image value
Factors affecting to real estate and housing prices
In addition to studies of individual factors affecting to real estate and housing prices
(Greenberg &Crossney (2005), Ziet et al (2008), Hinkelman and Swidler (2008) ) many
studies refer to the group of factors, typically: Ozdilek et al (2002) with 3 main groups:
physical variables, environmental variables and location variables; Boris et al (2005)
proposed a basic research model under Hedonic valuation model (HPM): social factors,
physical factors, surrounding environment, real estate characteristics; Muhamad et al (2016)
evaluated the properties of construction, location, and neighborhood that affect housing
prices in Malaysia
factors The first group includes: 1 / the internal and external attributes of the house; 2 / The second group is the quality of accompanying services; 3 / The third group associated with the demographic variable
2.1.2 Overview of nationally published scientific works related to the topic
Previous studies (Nguyen Manh Hung et al (2009), Pham Van Binh (2013), Nguyen Quang Thu et al (2013), Luc Manh Hien (2014), Le Van Binh (2017), Nguyen Tuan Anh) (2018)) presented and analyzed the impact of factors on real estate prices such as: Area of the campus; Distance to city center; Number of floors of construction and location of houses on fronts or in alleys; ) quality of apartment construction and services, apartment management, effects of customer support policies, financial policies, physical variables, location variables, ambient variables, multiplier financial factors, non-financial factors But these studies still have certain limitations on the scope of research, research samples; theoretical research and empirical research to fully present, analyze and synthesize the factors that affect real estate prices
The studies on the factors affectingto real estate prices are summarized in Table 2.5
2.1.3 Theoretical model and research problems solved in the thesis
The theoretical model is built on the research overview as follows:
Draft scale
Testing the research scale (Cronbach alpha + Total variable
correlation)
Cronbach Alpha
Preliminary Quantification
Theoretical basis
Official quantification
EFA Factor discovery analysis (EFA weight test, Explanatory variance,
number of factors) Qualitative
Trang 4\
H1 Theoretical model is based on research overview
From the research overview, the scale system of factors in the theoretical model is also built
with the independent variables of 43 component attributes and 6 component attributes of the
demographic factor (this factor proposed additions from theoretical models); The dependent
variable consists of 3 component attributes
The research problems solved in the thesis: The thesis mentioned and solved the problem still
left open (gaps) from previous research works The thesis inherits and develops theories
about the formation of real estate prices and the factors affecting to the selling price of luxury
apartments in the Hanoi real estate market; Research direction of this topic will contribute to
supplementing previous studies that are left open
2.2 Rationale for prices and factors affecting to real estate prices
Based on the regulations and legal documents, the author said that:
* Real estate is a type of property, including: land, houses and structures attached to the land;
including properties associated with such houses and constructions; other assets attached to land or other assets as required by law
2.2.2 Definition of High-end condominiums and luxury apartments
a / High-end apartment building is a high-rise building for mixed residential and service
purposes; having investment rate of over 20 million VND / m2; have a high quality of life equivalent to 4-star hotels or more
b/ High-end apartment building is a self-contained apartment owned by a rich customers,
has the right to co-own multi-facilities of a high-end apartment
2.2.2 The concept and nature of the price category
Smith (1776) and next to Ricacdo (1871) argued that: The price is a monetary expression of the value of the good The seller defines the price of a good and a service as the income the seller receives through transactions The price and value of the goods are closely related; price has a close relationship with the use value or the value of the good; prices and socio-economic relations
2.2.3 Property value and price characteristics
Value is the core of the commodity The concept of market value forms the main basis for real estate valuation (Ozdilek et al., 2002) Basically, the market value is calculated by the market price of the most likely transaction
2.2.4 Factors that influence prices
Internal factors (Marketing goals, Marketing - mix; Production costs and other internal factors); External factors (Characteristics of the market and demand, the nature and structure
of competition, and other external factors)
- Through real estate value: The factors affecting to the price include: (Physical
Trang 5(2010) emphasizes 9 factors that influence price perception
2.3 Theories related to the research topic
Among the theories related to the research topic, typically: Planning behavioral theory; Asset
Effect Theory and Quality Position Theory These theories are related to the factors affecting
to the apartment selling price as well as some component attributes of the factors In
addition, some theories about marketing, transmission information is also referenced in use
CHAPTER 3: BACKGROUND AND RESEARCH METHODS
3.1 Research background
3.1.1 Overview of real estate market in Hanoi in the period 2010-2018
Market demand is shown in Table 3.1 and Table 3.2 as follows
Table 3.1: Demand for residential real estate in urban areas
Table 3.2: Demand for housing in urban areas
Period (year)
Number of
housingunits for
new households
(million units)
Number of units
to bereplaced (2% per year) (million units)
Estimated total housing unit demand (million units)
Equivalent to floor area (million meter)
Population in major cities Million (people) 26,45 36 Percentage of urbanization % of total
Per capital / household Person/
Average commercial floor area meter/person 19,0 28 Total number of apartments segments Million (units) 6,70 10,30 Total area of square meter of commercial floor Million meter 467,8 908
Market supply: Real estate products (real estate) in Hanoi are divided into many different segments: residential real estate (apartment buildings, land plots, villas, individual houses); Commercial real estate (office for lease, commercial center and retail space); Specialized real estate (industrial real estate) High-end apartments are the biggest backlog in the real estate market Supply in districts is quite diverse, but mainly concentrated in the mid-end segment Real estate prices in Hanoi tend to increase with a large fluctuation range; Property prices also change cyclically and are strongly influenced by government policy and objective environment
3.1.2 Multi-family housing development is concentrated in Ha Noi city
The process of social development from collective housing to luxury apartments in Ha Noi has gone through the following stages: The period from 1954 to 1986 was the period of building a collective house made of wooden structures and simple prefab house After that, the first commercial apartment building was built in Ha Noi in 1987 was the 9-storey CT4B Building in Bac Linh Dam urban area Followed by a series of commercial apartments, resettlement apartments, cheap condominiums and new condominiums Indispensable trend
of building high-rise condominium models in big cities such as Ha Noi and Ho Chi Minh City
3.1.3 Characteristics of some typical high-end apartment buildings in Ha Noi
a- The highest selling price compared to commercial apartment segments;
b- Full range of internal facilities and public services around;
Trang 6đ- The position and location of the apartment increases the living value and price;
e- Customers in the segment with a lot of well-off money;
3.2 Research method and research model
3.2.1 Qualitative research methods
Qualitative research methods include: Research objectives and subjects; method of sampling
and deliberately applied techniques to subjects participating in interviews and group
discussions Open questions on factors related to supply and demand related to the selling
price of apartments; Raising open questions related to observed variables of factors according
to the opinions of interviewed subjects, comments on draft scale 1 of the thesis )
3.2.2 Quantitative research method
Research sample: Sampling the preliminary study taken according to the rule of
multiplication 5 (Hoang Trong& Chu Nguyen Mong Ngoc, 2009) The questionnaires were
sent to organizations and individuals (anonymous respondents) for investigation They are
investors, owners, distribution floors, tenants, users, managers, building administrators and
building management operators in Ha Noi They also have different perceptions and
assessments of high-end condominium prices
Data analysis software SPSS 22.0 and AMOS with the tools: Descriptive statistics;
Confidence testing of research concepts; exploratory factor analysis; Factors confirmatory
analysis; Correlation analysis; Regression analysis and testing of research hypotheses
3.2.3 Qualitative research results
Proposed research model and research hypotheses:
Physical characteristics
Apartment's position & location
Factors affecting the selling price
of luxury apartments Surroundings
Quality of condominium management services
The dependent variable (target variable): perception of the selling price of a high-end
apartment in Hanoi;
Independent variable (factor variable): The group of internal factors belongs to real estate
value (physical characteristics, location and position, surrounding environment ); Quality of condominium management services; Demographic characteristics
Regulating variable (the factor associated with the investor): Characteristics of the investor
(position and reputation in the market, investment and business capacity ) Research theories:
H1: The physical characteristics of a high-end apartment have an impact on the selling price
of a high-end apartment (selling price is based on the area of meter)
H2: The location of the apartment and the location of the building affect to the selling price
of a high-end apartment H3: The surrounding environment affects to the selling price of a high-end apartment;
H4: Service and management quality affects to the selling price of High-end apartment; H6: The investor's characteristics (position and reputation; finance, technology, management; marketing) affect to the selling price of a high-end apartment
H7: High-end apartment's selling price factors have an interactive relationship
Scale development: The scales of the independent and dependent variables are developed
(2nd scale): 1 / The physical characteristics of the apartment include 10 component attributes; 2 / The surrounding environment consists of 10 component attributes; 3 / The location and position of the apartment include 10 component attributes; 4 / Quality of apartment management services includes 10 component attributes; 5 / Characteristics of the customer segment including 6 component attributes; 6 / The investor's characteristics include
Trang 7attributes
3.2.3.4 Data processing
The data is cleaned and processed based on SPSS software After performing statistics to
describe collected data, testing the value of the variable by exploratory factor analysis method
EFA; assess the reliability of the scale by the Cronbach Alpha reliability coefficient;
Verification of multivariate regression model and CFA confirmation factor analysis
- The thesis studies the impact of independent variables and control variables on the selling
price of luxury apartments Therefore, the author will analyze 2 linear regression models:
Model 1 includes 05 independent variables and dependent variables
Model 2 includes 05 independent variables, 01 control variable and dependent variable
The multiple regression equation for the study is as follows:
GBCHCC (1) = β1 + β1*VT + β2*VL + β3*NK + β4*MT + β5*CL
GBCHCC (2) = β1 + β2*VT + β3*VL + β4*NK + β5*MT + β6*CL + β7*DT
Inside:
GBCHCC: Selling price of luxury apartment
VT: Location of the apartment and the location of the apartment
VL: Physical characteristics of the apartment
MT: Ambient
CL: Service quality & apartment management
NK: Demographic characteristics
DT: Investor's characteristics
β 1: Constant
β2, β3, β4, β5, β6, β7 are the regression coefficients
ε is the random error
CHAPTER 4: RESULTS OF THE RESEARCH ON FACTORS AFFECTING TO THE
SALE PRICE OF A HIGH-CLASS APARTMENT
4.1 Preliminary quantitative study results
From the scale that has been adjusted through qualitative research, the author
performed a test investigation on a sample of 130 subjects to evaluate the reliability of
follows:
Attributes (observed variable): VL10, VT5, MT1, MT2, MT9, CL3, CL6, NK1 and NK4 have the total variable correlation coefficients less than (<) 0.3, so they are excluded The remaining attributes have Cronbach Alpha coefficients> 0, 6, and at the same time, the observed variables have the total variable correlation coefficient> 0.3, so they are eligible to perform the next steps Thus, after doing preliminary quantitative research and evaluating the reliability of the scale from the data obtained, some scales have changed in the number of attributes (observed variables) compared to the scale Measurements have built up from qualitative research The scales with the remaining observed variables were re-encoded to include in official quantitative research (table 4.3)
4.2 Official quantitative research results
4.2.1 Sample descriptive statistics
Table 4.4: Characteristics of the research sample
- Gender (male, female);
- Age (from 18t-25; 26-30; 31-36; and over 36 years old
- Average income: (under 5 million /month; from 5-10 million; from 11 million-20 million; and over 20 million / month;
- Education: Graduated from high school; College / professional high school graduate; Graduate; Graduate graduate; and other
- Number of years participating in project management: less than 2 years; over 3 years, over 5 years, over 10 years
The descriptive statistical results of the independent variables are presented in tables 4.5 to 4.10 The results show that the constituent attributes of the factors are highly appreciated;
from 3.44 and up For example, for the factor “Demographic characteristics”: The ability of
home buyers to respond and solve problems (income) is assessed to have the strongest impact with an average score of 4,279 points; followed by Family Membership with 4,275 points; Age with 4.02 points; Education level with 3.93 points
4.2.3 Discovery factor analysis
Table 4.11: KMO's test results, Bartlett's TestKMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy ,897
Trang 8Bartlett's Test of
Sphericity
KMO coefficient = 0.897, satisfying the condition: 0.5 <KMO <1, discovery factor analysis
is appropriate for actual data
Test the correlation of the observed variables in a representative measure
Barlett test has Sig = 0.000 <= 0.05, meaning that the representative factors and observed
variables are linearly correlated, proving that the variables in the population are related to
each other
Test the explanatory level of the observed variables for the factors
Table 4.12: Cumulative column shows the variance extracted is 58,346%, this means that the
observed variables explain 58,346% of the variation of the factors Prove that the factor
analysis research data is appropriate Table 4.12, line 5, shows that there are 5 factors with
Eigenvalues value greater than 1
Results of the EFA model
Use the varimax method of the factors The results of factor rotation times are shown in
[table4.13]: Research results of factors affecting the selling price of high-end apartments
according to decreasing degree
The results from table 4.13 show that load factor coefficient ≥ 0.5, proving that all component
variables tend to converge (Hair et al., 2010)
4.2.4 Evaluate the reliability of the scale
Independent variables:
Table 4.14 shows that, the observed variables have correlation coefficients greater than 0.3
and Cronbach's Alpha coefficients greater than 0.6 Therefore, all variables are reliable and
significant (Hoang Trong& Chu Nguyen Mong Ngoc, 2008) For example: The factor
correlation coefficient> 0.3 Thus, this factor ensures reliability
The dependent variable "Selling price of luxury apartment":
The dependent variable "Selling price of a luxury apartment" includes 3 observed variables, with Cronbach Alpha coefficient = 0,901, and all observed variables have total variable correlation> 0.3 Thus, this scale ensures reliability and significance (Hoang Trong and Chu Nguyen Mong Ngoc, 2008), as follows:
Selling price of luxury apartment
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha
if Item Deleted
Selling price of luxury
Selling price of luxury
Selling price of luxury
4.2.5 Analysis of regression model when there is no control variable
EFA analysis of the scale of factors affecting the selling price of luxury apartments (GBCHCC) and the scale of the selling price of high-end condominiums of enterprises shows that there are 29 observed variables satisfying requirements classified into 5 groups of factors, including: 1 / Physical characteristics of a high-class apartment (VL) including 9 observed variables; 2 / The location of the apartment and the position of the apartment (VT) include 6 observed variables; 3 / The surrounding environment (MT) includes 6 observed variables; 4 / Quality of apartment management services (CL) includes 5 observed variables;
5 / Demographic characteristics (NK) include 4 observed variables; 6 / Investor's characteristics (DT) include 4 observed variables; 7 / The selling price of luxury apartments (GBCHCC) includes 3 observed variables (here is the perception of price for the respondents)
Trang 9Model Summary
a Dependent Variable: GBCHCC
The Enter method is used to regression analysis of the factors affecting the selling price of a
high-end apartment, with 5 factors of the scale being analyzed Adjusted R2 square is used to
evaluate the suitability of the model The regression results showed that R2 was adjusted by
0.890 (the model explained 89% of the change in the GBCHCC variable) To test the
suitability of the polyploid linear regression model, we use F value in the ANOVA analysis
table and the data matching model with 95% confidence (the significance of F-statistic in the
ANOVA is less than 0.05- through the ANOVA table)
There are five factors: 1 / The physical characteristics of the apartment CCCC (VL), 2 / The
location of the apartment and the location of the apartment (VT), 3 / Ambient (MT), 4 /
Quality apartment management services (CL), 5/ Demographic characteristics (NK) have a
positive influence on the selling price of luxury apartments (here is the perception of the price
for the respondents ) and statistically significant
The regression equation for the normalized variables is taken from the table with the
significance of the partial regression coefficients in the model - Coefficientsa has the
following form:
GBCHCC = 0.843 + 0.156VT + 0.198MT + 0.175VL + 0.113NK + 0.174CL
Test research hypotheses
Based on the above results, hypotheses: H1, H2, H3, H4, H5, H6 are accepted
4.2.6 Analysis of regression model with control variable (DT)
Table 4.16 Synthesize index to analyze multiple regression factors affecting to
GBCHCC
a Dependent Variable: GBCHCC
b Predictors: (Constant), CL, VT, MT, VL, NK
c Predictors: (Constant), CL, VT, MT, VL, NK, DT
- When adding control variables to the study with 6 scale factors analyzed Adjusted R square
GBCHCC variable) To test the suitability of the polyploid linear regression model, we use F value in the ANOVA analysis table and the data matching model with 95% confidence (the significance of F-statistic in the ANOVA is less than 0.05 - through the ANOVA table)
There are six factors: Physical characteristics of a high-end apartment (VL); The location of the apartment and the location of the apartment building (VT); Ambient (MT); Quality of apartment management services (CL); Demographic characteristics (NK); The characteristics
of the investor (DT) have a positive influence on GBCHCC activities and are statistically significant (here is the perception of price for the respondents)
Regression equations for normalized variables are taken from the table The meaning of the partial regression coefficients in the model - Coefficientsa has the following form: GBCHCC = 0.299 + 0.265VT + 0.161VL + 0.190MT + 0.153NK + 0.008CL + 0.165DT
Test research hypotheses
Analysis results show: 1 / Physical characteristics of high-class apartment (VL); 2 / The position of the apartment and the location of the apartment (VT); 3 / Ambient (MT); 4 / Quality of apartment management services (CL); 5 / Demographic characteristics (NK); 6 / The investor's characteristics (DT) have a positive impact on the selling price of a luxury apartment (GBCHCC) and have statistical significance (P ≤ 0.05), proving that:
- The physical characteristics of the apartment have a positive relationship with the selling price of a high-end apartment
- The location of the apartment and the apartment's position have a positive relationship with the selling price factors of high-end apartments
- The surrounding environment has a positive relationship with the selling price of luxury apartments;
- Service quality & apartment management has a positive relationship with the selling price
of luxury apartments
- The investor's characteristics have a positive relationship with the selling price of luxury apartments;
Trang 10luxury apartments;
* The elements of the selling price of a high-end apartment are interrelated with each other
That is, hypotheses: H1, H2, H3, H4, H5, H6, H7 are accepted
Results of analysis of variance (ANOVA):
Position and prestige with luxury apartment price, image and brand name with high-end
apartment price, capacity and experience with high-end apartment price and Marketing and
Communication Strategy for apartment price High-end apartments show no difference in the
assessment results of respondents regarding position and prestige factors with the selling
price of luxury apartments (due to factors with sig> 0.05)
CHAPTER 5: CURRENT SITUATION AND SOLUTIONS
5.1 Reality
5.1.1 Selling price and product quality
Situation: The investor's high-end apartment price is not commensurate with the quality of
the apartment and building services according to the market mechanism; does not reflect the
standard of an apartment building that is labeled as a luxury apartment project
Solution: To limit this, it is necessary to: (i) Approval plan on total investment and financial
plan appraised / appraised by departments as the basis for construction department to issue
construction license will be pasted publicity at the project and at the office of the People's
Committee where the project is located; (ii) The selling price of the investor for the first time
will comply with the price list + coefficient as the public financial plan; (iii) Avoid customers
who do not know about prices and brokers or investors raise prices unreasonably
5.1.2 Selling price and customer psychology
Situation: Building high-end condominium prices that exceed income and customer
satisfaction;
Solution: Investor needs to understand the psychological development of the target customer
Understand the preferences, wants and needs of customers Providing beautiful real estate
Situation: The need to enjoy the quality of life in the home is increasing The selling price of
a high-class apartment is too high, not commensurate with the quality expected by customers Excess supply due to many defects from the investor and from the object
Solution: Investor needs to know competitors with a similar number of products in the future;
survey purchasing power in the market; products that satisfy customers; reduce expected returns; increasing derivative values for customers and related partners
5.1.4 Market research and customer segmentation
Situation: Investor is not bold enough to pay to buy sociological information; subjective
estimation and profit expectation are too high, so the selling price and opening time are not suitable with the market
Solution: There must be quite accurate data / parameters through the results of methodical
and serious market research; Investor needs to hire a professional unit in market research and sociology to prepare an honest-feasibility study report on PS (Pre-feasibility Study)
5.1.5 Finishing products
Situation: Investors often subjectively impose their aesthetic tastes through completed
apartments Consequently, investment costs and selling prices are also pushed up; customers have different tastes and tastes of their accommodation (colors, materials, equipment ); customers often have to destroy a part or the whole to complete again as the owner should waste money of the efforts of both sides
Solution: Should basically improve the use of functions; (plastering, wall priming, kitchen
pedestal, staircase, plaster ceiling, electricity and water installation to the apartment ); depending on economic conditions and preferences of customers so that they can choose the type of finishing material; color and cost of investment (wood, stone, brick, glass, equipment
or wallpaper );