Report about buying house in Ha Noi and Ho Chi Minh City 2013

Copyright © W&S Company Limited - 2013

HOUSING MARKET IN HANOI & HOCHIMINH CITY November 2013, W&S Company Limited


RESEARCH CONTENTS

PART 2. RESEARCH INFORMATION

PART 3. EXECUTIVE SUMMARY

PART 4. RESEARCH FINDINGS

PART 1. RESPONDENT PROFILE


PART 1. RESPONDENT PROFILE

50.0 50.0

Province

Hanoi(n=100)

Ho Chi Minh city(n=100)

42.0

58.0

Gender

Male (n=84)

Female (n=116)

62.5

37.5

25 - 30 years old (n=125)

31 - 40 years old (n=75)

Age

32.5 33.0 34.5

7,500,000 - 14,999,999 VND

(n=65)

15,000,000 - 19,999,999 VND

(n=66)

20,000,000 - 30,000,000 VND

(n=69)

Monthly household income

Unit (%)


Research method : Quantitative – Online research

Timing : 1st – 15th October 2013

Sample size : 200

Research area : Hanoi & Ho Chi Minh City

Sampling method : Internet sampling

Target respondents :

Monthly household income: 7,500,000 – 30,000,000 VND

Age: 25 – 40 years old

Having intention to buy a house in the next 2 years

Research objective :

Exploring the features of the house that the respondents intend to buy

Elements affecting house purchase decision

Housing segments by psychological factors

PART 2. RESEARCH INFORMATION


[1] 71.0% of the respondents intend to buy a house within the next 1 – 2 years

41% of the respondents choose the next 1.5 – 2 years as the intended time of purchase, regardless of area or SEC.

The areas in Hanoi and Ho Chi Minh city chosen as the intended places for purchase within the next 2 years are:

Hanoi: Cau Giay District (22.0%), Ha Dong Distict (15.0%), Thanh Xuan District (10.0%).

Ho Chi Minh city: Go Vap District (11.0%), Thu Duc District and District 7 (both with 9.0%).

[2] More than half of the respondents intend to buy Row houses to live (57.5%)

SEC groups: Row houses is most considered for purchasing in the future by all groups.

Area groups: The Hanoi group prefers Apartments more than the HCMC group with the respective percentages of

54.0% and 28.0%. In Ho Chi Minh city, Row houses is more preferred with 72.0% compared to 28.0% in Hanoi city.

[3] More than half of the respondents prefer Direct payment method between sellers and buyers

Nearly 60% of the participants select this method if buying a house within the next 2 years, regardless of area, gender, age

or SEC.

[4] 8 out of 10 respondents choose to have loans for buying a house within the next 2 years (1)

In which, Loans from family / relatives and Bank loans are chosen more than other types with the respective

percentages of 65.0% and 62.5%.

Besides having loans, there is still 21.0% of the respondents choosing Gifted money from family / relatives and 14.5%

will buy a house if saving enough money in the next 2 years.

PART 3. EXCUTIVE SUMMARY


[4] 8 out of 10 respondents choose to have loans for buying a house within the next 2 years (2)

In terms of living area and SEC, Bank loans is preferred to other types of loans by the respondents living in Ho Chi Minh

city, or the group with monthly household income from 20,000,000 – 30,000,000 VND. Meanwhile, Loans from family /

relatives is chosen more by the respondents living in Hanoi, or the group with income from 7,500,000 – 19,999,999

VND / Month.

[5] The choice for the level of financial support / loans is different among the groups

Specifically, for the group choosing Gifted money from family / relatives, the highest level of support is 10% - 20% of

the house price (26.2%). For the group choosing to have Loans, the loan amount is 31% - 50% of the house price

(33.8%).

[6] 46.5% of the respondents intend to buy a house with the floor area from 40 – 60m2 to live in the next 2 years

For Row houses, ground area is mostly selected from 40 – 50m2 (29.1%) compared to floor area of 51 – 60m2 for

Apartments (23.2%).

In addition, 40% of the respondents in Hanoi have intended to buy Row houses with ground area of 40 – 50m2 and area

of 81 – 100m2 for Apartments (24.1%). Meanwhile, the respondents in Ho Chi Minh city tend to buy Row houses and

Apartments with the average area of 51 – 60m2.

The ground area of 40 – 60m2 is mostly preferred for Row houses by all SECs. However, there is quite a difference in

term of the area of the intended Apartment by income.

[7] 2 out of 5 participants in Hanoi and Ho Chi Minh city intend to buy a house with the price of 500 million – under 1

billion VND (1)

Specifically, 21.5% of the respondents intend to buy a house with the price of 500 – under 800 million VND and 19.0%

intend the price of 800 million – under 1 billion VND in the next 2 years.



[7] ] 2 out of 5 participants in Hanoi and Ho Chi Minh city intend to buy a house with the price of 500 million – under 1

billion VND (2)

Regarding types of house, 20.5% of the respondents intend to buy Row houses with the price of 500 – under 800 million

VND while Apartments is from 800 million – under 1 billion VND (24.4%).

The price of the intended house changes with area. For example, the intended price for the ground area of under 100m2 is

500 – under 800 million VND and 1.5 – under 2 billion VND for the ground area of over 100m2 for Row houses.

The price of the intended purchase house is different between Hanoi and Ho Chi Minh city. Specifically, for the Hanoi

group, Row houses has the intended price of 1.5 - under 2 billion VND (24.4%), and that number is 800 million –

under 1 billion VND for Apartments (24.1%). On the other hand, those two types of house have the intended price of

500 – under 800 million VND for the respondents in Ho Chi Minh city.

In addition, the group with MHI from 7,500,000 – 14,999,999 intend to buy a house with price of under 1 billion VND

for both Row houses and Apartments. Meanwhile, the other MHI groups tend to buy a house of both types with the price

of over 1 billion VND.

[8] Word – of – mouth and real estate websites are the two most considered information channels

Up to 80.0% of the respondents look for more housing information from Family / Relatives and 72.0% asks this

information from Friends / Colleagues when buying houses. Also, nearly ¾ of the respondents will search for housing

information via Real estate websites (67.0%) or Official website of real estate companies (61.5%).

However, when mentioning the most trusted sources of information, 35.5% of the respondents choose Recommendation

from Family / Relatives, which is followed by Real estate website (19.5%).

[9] One of the most considered factors when buying a house is Want have a stable place, with 65.5%

The next three important reasons for buying a house are Want to have a separate place for my family (53.3%); Get

more space for myself (49.0%) and Have accumulated enough money / fund to buy a house (42.0%).



[10] To attract buyers, a house needs to satisfy 3 elements: Price & Legality, Structure & Facility and Home location

1. Price & Legality (4.30 / 5 point): Buyers are quite interested in general Price factor, payment method and assurance

on legal issues of a house.

2. Structure & Facility (4.09/5 point): A house must be ensured with structural integrity, drainage system,

communication system, general security, etc.

3. Home location (3.89 / 5 point): A house needs to satisfy requirements such as: Near markets / Grocery / Food

stores / Supermarkets / Commercial centers / School / etc.

Regarding Apartments, important elements that should be ensured are: Apartment sales contract (4.62 point),

Ownership period (4.35 point), Usable space (4.35 point), Security system (4.34 point), Technical infrastructure of

apartments (4.33 point)…

[11] According to the results of cluster analysis, there are 4 typical psychological groups in the society affecting house

purchase decision:

1. Emotionally volatile group

2. Agreeable group

3. Well-organized group

4. Extravert & understanding group

‘Assurance of legal issues when buying a house’ in ‘Price & Legality’ is a highly considered element when buying a

house for all 4 psychological groups. Next, for the ‘Structure & Facility’ factor, all 4 groups are concerned of ‘Security

with the house surroundings’. Finally, for ‘Home location’ factor, each of the groups has different choice of location and

nearby accommodations.



PART 4: RESEARCH FINDINGS

FEATURES OF THE INTENDED HOUSE BY PSYCHOLOGICAL FACTORS

OVERVIEW OF THE INTENTION TO BUY A HOUSE 1

SOURSES OF INFORMATION AND INFLUENCE FACTORS

REQUIRED ELEMENTS OF A HOUSE

2

3

4


1 TỔNG QUAN VỀ NGÔI NHÀ

ĐỊNH MUA

1 OVERVIEW OF THE INTENTION TO BUY A HOUSE


1. TIME

41.0% of the respondents plan to buy a house in the next 1.5 – 2 years.

Q. Please tell us when you intend to buy a house? [SA] n=200

More than 7 out of 10 respondents intend to buy a house in the next 1 – 2 years

29.0

30.0

41.0

Within the next year

During the next 1 - 1.5 years

During the next 1.5 - 2 years

Figure 1.1. Estimated time of future house purchase

Unit (%)


Besides the most expected time to buy a house in both of areas is from 1.5 – 2 years, the percentage of buying a house within the next year in Chi Minh city is higher than in Hanoi, with 31.0% compared to 29.0%.

Q. Please tell us when you intend to buy a house? [SA] n=200 Q. Please tell us where you are currently living? [SA] n=200

There is a difference in the estimated time of future house purchase between Hanoi & Ho Chi Minh city

29.0

30.0

41.0




Hà Nội (n=100)

31.0

25.0

44.0




Tp.HCM (n=100)

Figure 1.2. Estimated time of future house purchase – By area

1. TIME

Unit (%)


11% respondents in Ho Chi Minh city choose to buy a house in Go Vap district, while 22% respondents in Hanoi choose Cau Giay district. The next choices are Thu Duc Dist., Dist. 7 (HCMC) and Ha Dong Dist., Thanh Xuan Dist. (Ha Noi).

Q. Please let us know where you intend to buy a house in HCMC? [SA] n=100

1.0

1.0

1.0

1.0

1.0

1.0

1.0

2.0

2.0

4.0

6.0

7.0

8.0

8.0

9.0

10.0

15.0

22.0

Ba Dinh District

Hoan Kiem District

Dong Anh District

Soc Son District

Ba Vi District

My Duc District

Thuong Tin District

Tay Ho District

Thanh Tri District

Gia Lam District

Dong Da District

Hai Ba Trung District

Hoang Mai District

Long Bien District

Tu Liem District

Thanh Xuan District

Ha Dong District

Cau Giay District

Figure 1.3. Area intended to buy a house – By area

Go Vap and Cau Giay are the two districts that more respondents intend to buy a house in the future

1. TIME

Hanoi (n=100)

Q. Please let us know where you intend to buy a house in Hanoi? [SA] n=100 Unit (%)

1.0 1.0

2.0

2.0 2.0

3.0 3.0 3.0

3.0 4.0

4.0 5.0

5.0 5.0

6.0

6.0 8.0 8.0

9.0

9.0

11.0

District 11

Phu Nhuan District

District 5

District 6

District 8

District 3

District 4

District 10

Hoc Mon District

District 2

Binh Tan District

Binh Thanh District

Binh Chanh District

Nha Be District

District 9

Tan Binh District

District 12

Tan Phuc District

District 7

Thu Duc District

Go Vap District

Hochiminh city (n=100)


Apart from Row houses, Apartments are quite considered at the moment with 41.0%.

Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=200

More than half of the surveyed people intend to buy Row houses in the next 2 years (58.5%)

Row houses (58.5%)

1

Figure 2.1. Kinds of house to buy

2. KINDS OF HOUSE

Apartments (41.0%)

2

Villas (0.5%)

3


While Row houses is more preferred in Ho Chi Minh city (72.0%), Apartments is more considered in Hanoi (54.0%).

There is quite a difference about the kind of intended house by area

Row houses

• 72.0%

Apartments

• 28.0%

Apartments

• 54.0%

Row houses

• 45.0%

Villas

• 1.0%

Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=200 Q. Please tell us where you are currently living? [SA] n=200

Figure 2.2. Kinds of house to buy– By area

Ho Chi Minh city (n=100) Hanoi (n=100)

2. KINDS OF HOUSE

Unit (%)


Row houses Apartments Villas

7,500,000 - 14,999,999 VND (n=65)

56.9 43.1 0.0

15,000,000 - 19,999,999 VND (n=66)

60.6 39.4 0.0

20,000,000 - 30,0000,000 VND (n=69)

58.0 40.6 1.4

56.9% of the income group of 7,500,000 – 14,999,999 VND chooses Row houses, while it is 60.6% for group of 15,000,000 – 19,999,999 VND and 58.0% for the group of 20,000,000 – 30,000,000 VND.

All three income groups intend to buy Row houses in the future

Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=200 Q. Please tell us your monthly household income after tax? [SA] n=200

Figure 2.3. Kinds of houses to buy – By SEC

2. KINDS OF HOUSE

Unit (%)


Q. Please tell us what payment method you would like to use when buying a house? [SA] n=200

Figure 3.1. Payment methods

Bank payment service is chosen by 40% of the respondents.

The majority of the respondents wants to use ‘Direct payment between seller and buyer’ method when buying a house

3. PAYMENT METHODS

59.5

40.0

0.5

Direct payment between seller and buyer

Bank payment service

Others

Unit (%)


0.0 1.0

41.0 39.0

59.0 60.0

Hanoi HCMC


Service paid through bank

Others

Q. Please tell us what payment method you would like to use when buying a house? [SA] n=200 Q. Please tell us where you are currently living? [SA] n=200

‘Direct payment between seller and buyer’ method is still preferred in both Hanoi and Ho Chi Minh city.

The choice of payment method is not different between the 2 areas

3. PAYMENT METHODS

Figure 3.2. Payment methods – By Area

Unit (%)



Bank payment service Others

7,500,000 - 14,999,999 VND 61.5 38.5 0

15.000.000 - 19.999.999 VND 60.6 39.4 0

20,000,000 - 30,0000,000 VND 56.5 42.0 1.4

Q. Please tell us what payment method you would like to use when buying a house? [SA] n=200 Q. Please tell us your monthly household income after tax? [SA] n=200

Figure 3.3. Payment methods – By SEC

For the three income groups of 7,500,000 – 14,999,999 VND, 15,000,000 – 19,999,999 VND and 20,000,000 – 30,000,000 VND the percentages of the respondents choosing this method are 61.6%, 60.6% and 56.5% , respectively.

All three income groups prefer ‘Direct payment between seller and buyer’ method

3. PAYMENT METHODS

Unit (%)


Q. Please tell us which financial assistance / loans you will use to buy a house? [MA] n=200

Gifted money from family / relatives (21.0%)

Loans (80.0%)

I only buy a house with my savings (14.5%)

Figure 4.1. Financing methods used when buying a house

Among forms of loans, Loans from family / relatives (65.0%) and Bank loans (62.5%) are the most preferred.

80.0% of the respondents intend to borrow when buying a house

4. FINANCING METHODS

(n=160)

Unit (%)

0.6 6.3

28.1

62.5 65.0

Others Loans from other funds:

Women funds, veteran funds,

company funds,…

Loans from friends /

colleagues

Bank loans Loans from family / relatives

※ Loans


The percentages of respondents choosing Loans in Hanoi and Ho Chi Minh city are 82.0% and 78.0%, respectively. In which, most respondents in Hanoi intend to get Loans from family / relatives with 67.1% while 66.7% of the respondents in Ho Chi Minh city choose Bank loans.

13.0

82.0

23.0

16.0

78.0

19.0

Ho Chi Minh city Hanoi

Loans from family / relatives

Loans

I only buy a house with my savings

Q. Please tell us which financial assistance / loans you will use to buy a house? [MA] n=200 Q. Please tell us where you are currently living? [SA] n=200

Figure 4.2. Financing methods used when buying a house – By area

The Hanoi group tends to choose Loans more than the Ho Chi Minh city group


(n=160)

Unit (%)

67.1 62.8

58.5

66.7

36.6

19.2

8.5 3.8

Hanoi Ho Chi Minh city

※ Loans by area


Bank loans

Loans from friends / colleagues

Loans from other funds: Women funds, veteran funds, company funds,…

Others


Set aside Loans, the group with monthly household income (MHI) from 7,500,000 – 14,999,999 VND is more likely to choose Gifted money from family / relatives (18.5%). Meanwhile, the other two groups are more likely to buy a house with Own savings.

Regarding forms of Loans, Loans from family / relatives is most preferred by MHI from 7,500,000 – 14,999,999 VND, and Bank loans is most selected by MHI from 20,000,000 – 30,000,000 VND (77.2%).

16.9

80.0

18.5

7,500,000 – 14,999,999 VND

15,000,000 – 19,999,999 VND

20,000,000 – 30,000,000 VND

Q. Please tell us which financial assistance / loans you will use to buy a house? [MA] n=200 Q. Please tell us your monthly household income after tax? [SA] n=200

Buying a house with loans is the most chosen method by all SEC groups


Figure 4.3. Financial forms used when buying a house – By SEC

Gifted money from family / relatives

Loans

I only buy a house with my savings

25.8

77.3

15.2

18.8

82.6

11.6

(n=160)

Unit (%)

7.500.000 - 14.999.999 VND

15.000.000 - 19.999.999 VND

20.000.000 - 30.0000.000 VND

※Loans by SEC


Bank loans

Loans from friends / colleagues

Loans from other funds: Women funds, veteran funds, company funds,…

Others


For the group receiving Gifted money from family / relatives, 26.2% of those answered that they could get from 10 – 20% of the house value. 33.8% of the group selecting Loans could receive the support from 31 – 50% of the house value.

Q. Please tell us the level of financial support from your family / relatives to buy a house? [SA] n=200 Q. Please tell us how much is your percentage of loans to buy the house? [SA] n=200

Figure 5. Level of financial support / loans

In general, the level of financial support / loans is different when buying a house

5. LEVEL OF FINANCIAL SUPPORT / LOANS

(33.8)

Under 10%

10% - 20%

21% - 30%

31% - 50% 51% - 70%

71% - under 100%

Full 100%

Loans

(26.2)

Under 10%

10% - 20%

21% - 30%

31% - 50% 51% - 70%

71% - under 100%

Full 100%

Gifted money from family / relatives

Unit (%)


51 – 60m2 is the next chosen ground area with 21.5%.

Q. Please tell us the ground area of the house that you intend to buy? [SA] n=200

1/4 participants intend to buy a house with the ground area of 40 – 50m2 in the next 2 years

6. GROUND AREA

Figure 6.1. Ground area of the intended house

6.5 25.0 21.5 12.0 12.5 12.0 6.0 3.5 1.0

Under 40m2 40 – 50m2 51 – 60m2 61 – 70m2 71 – 80m2 81 - 100m2 101 – 120m2 Over 120m2 Don't know / Don't specify

area of a house

Unit (%)


1.7

3.4

6.0

9.4

11.1

8.5

20.5

29.1

10.3

Don’t know / Don’t specify area of a house

Over 120m2

101 – 120m2

81 - 100m2

71 – 80m2

61 – 70m2

51 – 60m2

40 – 50m2

Under 40m2

0.0

2.4

6.1

15.9

14.6

17.1

23.2

19.5

1.2

Don't know / Don't specify area of a house

Over 120m2

101 – 120m2

81 - 100m2

71 – 80m2

61 – 70m2

51 – 60m2

40 – 50m2

Under 40 m2

Q. Please tell us the ground area of the house that you intend to buy? [SA] n=200 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=200

There is quite a difference in the ground area with different kinds of intended house

6. GROUND AREA

While the ground area of 40 – 50m2 is most considered for Row houses (29.1%), the ground area of 51 – 60m2 is preferred for Apartments (23.2%).

Figure 6.2. Ground area of the intended house – By kind of house

Row houses (n=117) Apartments (n=82)

Unit (%)


There’s quite a difference in the intended area according to the type of house

6. GROUND AREA

For Row houses: Up to 40.0% of the respondents in Hanoi intend houses with the ground area of 40 – 50m2. On the other hand, in Ho Chi Minh city, houses with the ground area of 40 – 60m2 are most considered with 44.4%. For Apartments: While more respondents in Hanoi intend apartments with the floor area of 81 – 100m2 (24.1%), more Ho Chi Minh city respondents consider apartments with the floor area of 51 – 60m2 (35.6%).

Hình 6.2. Ground area of the intended house – By area

ĐVT (%)

2.8

4.2

8.3

11.1

12.5

11.1

22.2

22.2

5.6

Chưa xác định diện tích

Over 120m2

101 – 120m2

81 - 100m2

71 – 80m2

61 – 70m2

51 – 60m2

40 – 50m2

Under 40m2

Row houses (n=45)

Apartments (n=54)

0

3.6

3.6

0

21.4

21.4

35.7

14.3

0

Ho Chi Minh city (n=99)

0

2.2

2.2

6.7

8.9

4.4

17.8

40.0

17.8

Don't specify the area

Over 120m2

101 – 120m2

81 - 100m2

71 – 80m2

61 – 70m2

51 – 60m2

40 – 50m2

Under 40m2

0.0

1.9

7.4

24.1

11.1

14.8

16.7

22.2

1.9

Row houses (n=72)

Apartments (n=28)

Hanoi(n=100)

Q. Please tell us the ground area of the house that you intend to buy? [SA] n=199 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=199 Q. Please tell us where you are currently living? [SA] N=199


Specifically, Row houses is most preferred by all the SEC groups with the ground area of 40 – 60m2. However, there is quite a difference in term of the intended floor area for Apartments by monthly household income.

Q. Please tell us the ground area of the house that you intend to buy? [SA] n=199 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=199 Q. Please tell us your monthly household income after tax? [SA] n=199

Hình 6.4. Ground area of the intended house – By SEC

Intended area has little change with income

6. GROUND AREA

ĐVT (%)

0

5.4

5.4

5.4

16.2

8.1

13.5

37.8

8.1

Don't specify …

Over 120m2

101 – 120m2

81 - 100m2

71 – 80m2

61 – 70m2

51 – 60m2

40 – 50m2

Under 40m2

0

0

3.6

14.3

7.1

14.3

39.3

17.9

3.6

2.5

0

2.5

15

10

10

22.5

27.5

10

0

3.8

7.7

23.1

15.4

19.2

11.5

19.2

0

2.5

5.0

10.0

7.5

7.5

7.5

25.0

22.5

12.5

0

3.6

7.1

10.7

21.4

17.9

17.9

21.4

0

7.500.000 – 14.999.999 VND

Row houses (n=37)

Aparments (n=28)

15.000.000 – 19.999.999 VND

Row houses (n=40)

Apartments (n=26)

20.000.000 – 30.000.000 VND

Row houses (n=40)

Apartments (n=28)


800 million – less than 1 billion VND is the secondly-most considered with 19%.

Q. Please tell us the value of the house that you want to buy? [SA] n=200

Figure 7.1. House price

21.5% of the participants intend to buy a house with the price from 500 – under 800 million VND

7. HOUSE PRICE

4.5

21.5

19.0

13.0

15.5

12.5

9.5

3.0 1.5

Under 500 million VND

500 - Under 800 million VND

800 million - under 1 billion

VND

1 billion - Under 1.2 billion VND

1.2 billion - Under 1.5 billion

VND

1.5 billion - Under 2 billion

VND

2 billion - Under 3 billion VND

3 billion VND and over

Don't know / Don’t specify home value

Unit (%)


1.2

1.2

11.0

11.0

15.9

12.2

24.4

23.2

0.0

Don’t specify home value


2 - under 3 billion VND

1.5 - under 2 billion VND

1.2 - under 1.5 billion VND

1 - under 1.2 billion VND

800 million - under 1 billion VND

500 - under 800 million VND


For Row houses, the price considered in the range of 800 million – under 2 billion VND; however; for Apartments are from 500 – under 800 million VND (23.2%).

Q. Please tell us the value of the house that you want to buy? [SA] n=199 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=199

Figure 7.2. House price – By kind of house

20.5% respondents consider Row houses with the price of 500 – under 800 million VND and 24.4% respondents consider Apartments with the price of 800 million – under 1 billion VND

7. HOUSE PRICE

Row houses (n=117)

1.7

3.4

8.5

13.7

15.4

13.7

15.4

20.5

7.7

Don’t specify home value




1.2 - under 1.5 billion VND

1 - under 1.2 billion VND

800 million - under 1 billion VND

500 - under 800 million VND


Apartments (n=82)

Unit (%)


Row houses: The ground area of under 100m2 is more considered with the price range of 500 – under 800 million VND while over 100m2 is more preferred with price range of 1.5 – under 2 billion VND (27.3%). Apartments: The house price tends to increase with the floor area.

Hình 7.3. House price – By area

The price of the intended house changes accordingly to the area and the type of house

7. HOUSE PRICE

Under 500 triệu

500 – under 800 million VND

800 million – under 1 billion VND

1 – under 1.2 billion VND

ĐVT (%)

Under 71m2

Row houses (n=80)

Aparments (n=50)

71 – 100m2

Row houses (n=24)

Aparments (n=25)

Over 100m2

Row houses (n=11)

Aparments (n=7)

10.0 0.0

22.5 36.0

17.5 30.0

12.5 14.0

15.0 14.0

13.8 4.0

5.0 2.0

2.5 0.0

1.3 0.0

2 – under 3 billion VND

1.5 – under 2 billion VND

3 billion VND and above

1.2 – under 1.5 billion VND

Don’t specify the area

4.2 0.0

20.8 4.0

12.5 16.0

12.5 8.0

16.7 24.0

8.3 28.0

16.7 16.0

8.3 0.0

0.0 4.0

0.0 0.0

9.1 0.0

9.1 14.3

18.2 14.3

18.2 0.0

27.3 0.0

18.2 57.1

0.0 14.3

0.0 0.0 Q. Please tell us the value of the house that you want to buy? [SA] n=197 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=197 Q. Please tell us floor area of the house you intend to buy? [SA] n=197


The respondents in Hanoi intend to buy Row houses with the price of 1.5 – under 2 billion (24.4%) while the price for Apartments is 800 million – under 1 billion VND (24.1%). In contrary, more respondents in Ho Chi Minh city intend a house with the price of 500 – under 800 million VND for all types of houses.

Q. Please tell us the value of the house that you want to buy? [SA] n=199 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=199 Q. Please tell us where you are currently living? [SA] N=199

Hình 7.4. House price – By area

The intended price is different between Hanoi and Ho Chi Minh city

7. HOUSE PRICE

Hanoi Ho Chi Minh city

House price Row

houses Apartme

nts Row

houses Apartme

nts

n=199 n=45 n=54 n=72 n=28

< 1 billion VND 22.2 44.4 56.9 53.6

1 billion VND and over 75.6 55.6 41.7 42.9

Don’t specify 2.2 0 1.4 3.6

ĐVT (%)

Under 500

million VND

500 - under

800 million

VND

800 million - under 1 billion

VND

1 - under

1.2 billion VND

1.2 - under

1,5 billion VND



3 billion VND and

over

Don't specify

the price

Hanoi (n=45) Row houses

2.2 13.3 6.7 11.1 22.2 24.4 11.1 6.7 2.2

Hanoi (n=54) Apartments

0.0 20.4 24.1 11.1 13.0 16.7 13.0 1.9 0.0

HCMC (n=72) Row houses

11.1 25.0 20.8 15.3 11.1 6.9 6.9 1.4 1.4

HCMC (n=28) Apartments

0.0 28.6 25.0 14.3 21.4 0.0 7.1 0.0 3.6


As a result, the group with MHI from 7,500,000 – 14,999,999 VND intends to buy a house with the price of under 1 billion VND for both types of house, i.e. Row houses and Apartments. Meanwhile, the other MHI groups intend a house with the price of over 1 billion VND for the two types of house.

Hình 6.4. House price – By SEC

The intended area changes with type of house and income

7. HOUSE PRICE

ĐVT (%)

7.500.000 - 14.999.999 VND (n=37) Row houses

7.500.000 - 14.999.999 VND (n=28) Apartments

15.000.000 - 19.999.999 VND (n=40) Row houses

15.000.000 - 19.999.999 VND (n=26) Apartments

20.000.000 - 30.000.000 VND (n=40) Row houses

20.000.000 - 30.000.000 VND (n=28) Apartments

Under 1 billion VND 62.2 67.9 45.0 26.9 25.0 46.4

1 billion VND and over 37.8 32.1 50.0 69.2 75.0 53.6

Don't know 0.0 0.0 5.0 3.8 0.0 0.0

Q. Please tell us the value of the house that you want to buy? [SA] n=199 Q. Please tell us what kind of house you want to buy in the next 2 years? [SA] n=199 Q. Please tell us your monthly household income after tax? [SA] n=199



ĐỊNH MUA

2 SOURSES OF INFORMATION AND INFLUENCE FACTORS


80.0% respondents will look for housing information from Family / Relatives, and 72.0% will ask Friends / Colleagues. Also, Real estate websites (67.0%) and Official website of real estate companies (61.5%) are the next common sources of information to refer to.

Q. Please tell us which of following sources you will use when buying a house? [Matrix MA, SA] n=200

Figure 8. 1. The most referred sources of information when buying a house

Word - of – mouth and real estate websites are the two channels to be referred the most

8. SOURCES OF INFORMATION

40.5 42.5 47.5 52.0 53.5 54.0 61.5 67.0 72.0 80.0

Ads on TV Classified ads website

Events / Housing Exhibitions

Ads in Newspapers /

Magazines

Real Estate Exchange

Ads on online Newspaper /

Magazines

Official website of real estate companies

Real estate websites

Recommendation from friends /

colleague

Recommendation from family /

relatives

Unit (%)


35.5% of the respondents choose to trust information referred by Family / Relatives the most among sources. Official website of real estate companies is chosen at the second place with 19.5%.

Q. Please tell us which of following sources you will use when buying a house? [Matrix MA, SA] n=200

Figure 8.2. The sources that are most trustable

Recommendation from Family / Relatives is the most trusted sources of reference

8. SOURCES OF INFORMATION

35.5 19.5 13.5 11.0 8.0 12.5

Recommendation from family /

relatives

Official website of real estate companies

Real estate websites

Recommendation from friends /

colleague

Real Estate Exchange

Others

Unit (%)


Q. Please tell us the decision factors affecting your purchase of a house in the near future? [MA] n=200

32.0 33.0 33.0 33.5 36.0 38.0 42.0

Financial support from family /

relatives

Based on current real estate

market conditions

Close to work Want realize prearranged plan

Do not want to rent / to live with relatives / friends

Can design / decorate a house

like I wish

Have accumulated

enough money / fund to buy a

house

Figure 9: Factors affecting house purchase decision

The next reason is Want to have a separate place for my family (53.0%) and Get more space for myself (49.0%). Specially, financial factor also plays an important role in the house purchase decision (42.0%).

Want to have a stable place is the top reason for 65.5% of the respondents

9. FACTORS AFFECTING HOUSE PURCHASE DECISION

Want to have a stable place

65.5

Want to have a separate place for my family

53.0

Get more space for

myself

49.0

Unit (%)



ĐỊNH MUA

3 REQUIRED ELEMENTS OF A HOUSE


*Based on a 5 point scale: 1- Strongly disagree, 2- Disagree, 3-Neutral, 4-Agree, 5-Strongly agree

Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200

Figure 10.1.1. Top ten elements affecting house purchase decision

Legality and Security are the two most important elements when buying a house

10.1 GENERAL ELEMENTS

In addition, other elements such as Solid ground and foundation (4.35 point), Price suits with pocket (4.33 point), A house has good drainage system (4.32 point) are also highly considered.

4.32

4.33

4.35

4.44

4.44

A house has good drainage system

Price suits with pocket

Solid ground and foundation

Security with the house surroundings

Assurance of legal issues when buying house

Top 5 elements

4.14

4.22

4.26

4.27

4.30

Good road conditions near the house

Reasonable price for position of the house

Reasonable price for quality of the house

High quality construction materials (cement, steel,

tiles …)

Waterproof wall when it rains

The next 5 elements

Unit (Mean)


In which, ‘Price & Legality’ is most observed by the respondents with the mean of score of 4.30. The next is ‘Structure & Facility’ (4.09 point) and ‘Home location’ (3.89 point).

1. Structure & Facility

Mean = 4.09

Near markets, grocery, food stores

Near supermarkets, commercial centers

Near schools

Near exercising locations

Near a main road, boulevards that have bus routes

Near hospitals / clinics

Near office

Located in densely populated area

Good road conditions near the house

2. Home location

Mean = 3.89

3. Price & Legality

Mean = 4.30

Reasonable price for position of the house

Reasonable price for quality of the house

Price suits with pocket

Assurance of legal issues when buying house

Simple payment transaction

A house has good drainage system

Fully equipped light system

A house has full communication system (TV cable, Internet,…) High quality bathroom / Toilet equipments (toilet, shower, washbasin,…)

Equipped with fire alarm system

Waterproof wall when it rains

Fully furnished (Bed, kitchen, fridge, washer,…)

High quality construction materials

Beautiful design

Completely new house

Solid ground and foundation

Security with the house surroundings

As a factor analysis result, ‘Structure & Facility’, ‘Home location’ and ‘Price & Legality’ are the 3 basic factors affecting house purchase decision

10.1. GENERAL ELEMENTS

*Based on a 5 point scale:

1- Strongly disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly agree

Unit (Mean) Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200


7.500.000 - 14.999.999

VND

15.000.000 - 19.999.999

VND

20.000.000 - 30.0000.000

VND

Factor 1: Structure & Facility

4.01 4.17 4.15

Factor 2: Home location 3.85 3.97 3.87

Factor 3: Price & Legality 4.30 4.36 4.27

Figure 10.1.2. General factors – By area

The respondents in Hanoi evaluate it with the mean of score of 4.38 which is higher than the respondents in HCMC with 4.24 point. Similarly, ‘Price & Legality’ is chosen more by the respondents with MHI from 15,000,000 – 19,999,999 VND.

Figure 10.1.3. General factors – By income

‘Price & Legality’ factor is the most important when buying a house regardless of province or income

10.1. GENERAL FACTORS

Hanoi HCMC

Factor 1: Structure & Facility 4.21 3.97

Factor 2: Home location 3.97 3.82

Factor 3: Price & Legality 4.38 4.24

*Based on 5 point scale: 1- Strongly disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-Strongly agree

Unit (Mean)

Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200 Q. Please tell us where you are currently living? [SA] N=200 Q. Please tell us your monthly household income after tax? [SA] n=200


Ownership period and Usable space (4.35 point) are the next considered elements. Especially, the respondents also consider the elements of security, infrastructure, technology of apartments.

Q. Please tell us the importance degree of following elements when buying an apartment to live in? [Matrix SA] n=82

The group who intend to buy an apartment is more interested in Apartment sales contract (4.62 point)

10.2. REQUIRED ELEMENTS OF APARTMENTS


Figure 10.2. Top ten elements affecting Apartment purchase decision

4.33

4.34

4.35

4.35

4.62

Technical infrastructure of apartment

Security system

Usable space

Ownership period

Apartment sales contract

Top 5 elements

4.20

4.22

4.23

4.24

4.27

The management of the building

Elevators

Garage

The company is responsible for equipment

maintenance and repair

Sanitation

The next 5 elements

Unit (Mean)



ĐỊNH MUA 4 FEATURES OF THE INTENDED HOUSE BY PSYCHOLOGICAL FACTORS


19.0%

29.5% 34.0%

17.5%

1: Emotionally volatile group (n=38)

2: Agreeable group (n=59)

3: Well - Organized group (n=68)

4: Extravert and understanding group (n=35)

Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200

Figure 11. Segmentation of the respondents – by psychological factors

Figure 1. ANOVA (Cluster)

*F-Test (To test the differences between these clusters in a model) with each of the variables in cluster is shown in figure 1 *As the result,, there is a significant difference among clusters with p-value = 0.00 < 0.05.

According to the results of cluster analysis, there are 4 groups with different psychological characteristics when buying a house

11. SEGMENTS OF THE RESPONDENTS BY PSYCHOLOGICAL FACTORS


Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200


Typical cluster analysis groups are interpreted as the following image:

Emotionally

volatile group

(Group 1)

Agreeable group

(Group 2)

Extravert &

understanding group

(Group 4)


Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200 Q. Please tell us where you are currently living? [SA] N=200 Q. Please tell us your gender? [SA] n=200 Q. Please tell us your age? [SA] n=200 Q. Please tell us your monthly household income after tax? [SA] n=200

Respondents’ profile by psychological groups:


Unit (%)

57.9

42.1

55.3

44.7

26.3

73.7

36.8

28.9

34.2

HCMC

Hanoi

Female

Male

31 - 40 years old

25 - 30 years old

20,000,000 - 30,0000,000 VND

15,000,000 - 19,999,999 VND

7,500,000 - 14,999,999 VND

Are

a G

end

er

Age

M

HI

Emotionally volatile group (n=38)

44.1

55.9

76.3

23.7

40.7

59.3

28.8

33.9

37.3

Agreeable group (n=59)

47.1

52.9

50.0

50.0

39.7

60.3

38.2

30.9

30.9

Well-organized group (n=68)

57.1

42.9

45.7

54.3

40.0

60.0

34.3

40.0

25.7

Extravert & understanding (n=35)


Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200 Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200

Figure 12.1. Features of the intended house by psychological factors

4.13 4.15 4.12

3.89

4.04

3.81

3.97

3.74

4.20

4.42

4.31

3.92

Emotionally volatile group (n=38)

Agreeable group (n=59) Well-organized group (n=68) Extravert group (n=35)

Structure & Facility Home location Price & Legality

The study also showed that Agreeable group appreciates ‘Price & Legality’ as well as ‘Structure & Facility’ more than other groups. Meanwhile, ‘Home location’ is more preferred by Emotionally volatile group (4.04 point).

‘Price & Legality’ is still the leading factor when buying a house for all psychological groups

12. FEATURES OF THE INTENDED HOUSE BY PSYCHOLOGICAL FACTORS


Unit (Mean)


Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200 Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200

Figure 12.2. Features of the intended house by psychological factors (Group 1)

Emotionally volatile group mostly evaluates three elements: ‘Assurance of legal issues when buying a house’, ‘Security with the house surroundings’ and ‘Near hospitals / clinics ’.

1. Emotionally volatile group

12. FEATURES OF THE INTENDED HOUSE BY PSYCHOLOGICAL FACTORS

Assurance of legal issues when buying a house (Mean= 4.29)

Price suits with pocket (Mean=4.29)

Reasonable price for quality of the house (Mean=4.21)

1. Price & Legality

4.20 point


4.13 point

3. Home location

4.04 point

Security with the house surroundings (Mean= 4.50)

Solid ground and foundation (Mean=4.34)

A house has good drainage system (Mean=4.24)

Waterproof wall when it rains (Mean=4.24)

High quality construction materials (Mean=4.18)

Near hospitals / clinics (Mean= 4.13)

Good road conditions near the house (Mean=4.13)

Near markets, grocery, food stores (Mean=4.11)

Near excercising locations (Mean=4.08)

Near schools (Mean=4.05)


Emotionally volatile

group

Unit (Mean)


Agreeable group is most concerned with the following three elements: ‘Assurance of legal issues when buying a house’, ‘Security with the house surroundings’, and ‘Good road conditions near the house’.

2. Agreeable group

12. FEATURES OF THE HOUSE INTENDING TO BUY BY PSYCHOLOGY


Assurance of legal issues when buying a house (Mean= 4.64)



1. Price & Legality

4.42 point


4.15 point

3. Home location

3.81 point





high quality construction materials (Mean=4.42)

Good road conditions near the house (Mean= 4.07)



Near hospitals / clinics (Mean=3.90)

Near office (Mean=3.88)

Agreeable group


Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200 Q. Please tell us your agreement degree on the following elements of your intended house? [Matrix SA] n=200 Unit (Mean)


Well-Organized group is most concerned with the three elements: ‘Assurance of legal issues when buying a house’, ‘Solid ground and foundation’, and ‘Good road conditions near the house’.


3. Well-Organized group


Assurance of legal issues when buying house (Mean= 4.53)



1. Price & Legality

4.31 point


4.12 point

3. Home location

3.97 point






Good road conditions near the house (Mean= 4.32)




Near supermarkets, commercial centers (Mean=3.99)

Well – Organized

group




Extravert & understanding group is most interested in some elements such as: ‘Price suits with pocket’, ‘A house has full communication system’ – ‘Security with the house surroundings’, and ‘Near markets, grocery, food stores’.


4. Extravert & understanding group


Price suits with pocket (Mean= 4.06)

Assurance of legal issues when buying house(Mean=4.06)


1. Price & Legality

3.92 point


3.89 point

3. Home location

3.74 point


Security with the house surroundings (Mean=4.17)




Near markets, grocery, food stores (Mean= 3.97)

Good road conditions near the house (Mean=3.04)

Near supermarkets, commercial centers (Mean=3.86)


Near a main road, boulevards that have bus routes (Mean=3.77)

Extravert & understanding group




Q. Please tell us how accurately these statements apply to you? [Matrix SA] n=200 Q. Please tell us which of following sources you will use when buying a house? [SA] n=200

Figure 13. Top 10 reliable sources of information by psychological groups

Besides, the Well-organized group appreciates the information from Official website of real estate companies at 23.5% more than the other groups.

Most respondents of the 4 groups appreciate the information provided by family / relatives

13. SOURCES OF INFORMATION BY PSYCHOLOGICAL FACTORS

Recommendation

from family / relatives

Official website of real estate

companies

Real estate

websites

Recommendation

from friends / colleague

Real Estate

Exchange

Ads on TV

LCDs screen at buildings

Ads in Newspap

ers / Magazine

s

Events / Housing Exhibitio

ns

Real Estate

freelancers /

brokers

Emotionally volatile group (n=38) 34.2 15.8 2.6 13.2 10.5 2.6 7.9 2.6 2.6 2.6

Agreeable group (n=59) 37.3 16.9 20.3 16.9 5.1 1.7 0 0 0 0

Well-Organized group (n=68) 30.9 23.5 14.7 8.8 11.8 0 1.5 2.9 0 1.5

Extravert & Understanding group (n=35) 42.9 20 11.4 2.9 2.9 5.7 0 0 5.7 0

Unit (%)

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Report about buying house in Ha Noi and Ho Chi Minh City 2013

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