Rationale of the study
Housing is a fundamental necessity for all social classes, significantly contributing to improved living standards and social stability while fostering national development Since 2016, Vietnam's real estate market has experienced notable growth, with affordable land and housing transactions in both urban and suburban areas By the end of 2020, real estate inventories had decreased compared to 2019, and early 2021 saw a 30-50% increase in real estate business activities Housing prices surged by 40-60%, with some projects witnessing up to 100% increases The focus on developing housing for workers in key industrial parks and the shift towards tourism-related real estate projects highlight the market's evolution As competition intensifies, real estate businesses must understand customer preferences and the factors influencing home-buying decisions to effectively cater to diverse needs in newly developed urban areas.
Vietnam Tataci Joint Stock Company specializes in construction, architectural design for civil and industrial projects, and real estate business Since late 2020, there has been a significant decline in housing purchasing power across Vietnam, particularly affecting residential areas associated with various businesses.
The Vietnam Tataci Joint Stock Company has been affected by the COVID-19 pandemic, highlighting the importance of homes as not only places of residence but also as spiritual sanctuaries This context necessitates an exploration of the factors influencing customer decisions in the housing market Therefore, the research topic "Factors Influencing Consumer Buying Intention for Housing at Vietnam Tataci Joint Stock Company" aims to identify these key factors and provide management insights for enhancing decision-making efficiency in home purchases.
Aims of the study
Identify personal value factors affecting the decision to buy a house of customers in Tataci., JSC.
Determine the impact of each value factor affecting the decision to buy a house of customers in Tataci., JSC.
Suggest some implications drawn from the research results to increase policies for managers to attract more customers and increase revenue for businesses.
The scope of the study
This thesis examines the personal value factors influencing home-buying decisions among customers of Tataci, JSC, by analyzing accounting data from the company over a three-year period, specifically from 2018 to 2020.
Methods of the study
The study employs a mixed-methods approach, integrating qualitative and quantitative research to explore factors influencing home-buying decisions Qualitative research involves group discussions and insights from experts, including a marketing lecturer and four real estate managers, to refine the research model and adapt existing scales for the specific market context The findings support the inclusion of the company's reputation in the research framework Subsequently, a convenience sampling method is used to interview 20 customers, allowing for adjustments to the preliminary questionnaire and ensuring reliability for the official research Quantitative analysis is conducted to quantify the relationships between variables, utilizing a 5-point Likert scale for measurement.
Organization of the study
The thesis includes the following contents:
LITERATURE REVIEW
Personal value
Value is a fundamental principle that encompasses self-selection, appreciation, and action The process of selection involves the freedom to choose from various options, ensuring that decisions are made after careful consideration; if this right is denied, the assessment becomes unjust Appreciation reflects an emotional response, recognizing and praising individuals for their accomplishments Action represents the translation of thoughts into behavior, emphasizing the importance of consistent evaluation, as true value is not transient but requires ongoing recognition and reinforcement.
Personal values, as defined by Rokeach (1968, 1973), are beliefs held by individuals or societies regarding appropriate behavior, particularly in contrast to actions that violate ethical standards within a community.
Individual values significantly influence human behavior and consumption patterns, serving as an essential tool for market segmentation Research indicates that personal values play a crucial role in comprehending complex behaviors, such as brand selection within specific product categories For marketers, it is vital to harness the cultural connections associated with a brand and effectively align them with the personal values of the target audience to enhance engagement and loyalty.
Personal values are essential to an individual's way of life, serving as a framework for determining right from wrong and what is significant According to Schwartz (1994), these values represent "desirable goals" that guide individuals in their pursuit of meaningful living Anana and Nique (2007) emphasize that personal values establish standards and rules that direct behavior towards oneself and others Schiffman and Kanuk (1997) further define personal values as a component of personal belief, comprising five key characteristics that shape individual actions and decisions.
Relatively few in the crowd
To guide the implementation of culturally appropriate behaviors
Prolonged or difficult to change
Do not be squeezed into a particular situation, and
Widely accepted by social members
Personal values form the foundation of an individual's perceptions and attitudes toward others, serving as a framework for evaluating and comparing people (Kamakura and Novak, 1992) These inner beliefs guide expectations, aid in conflict resolution, and regulate personal and social relationships (Lages and Fernandes, 2005) According to Zeithaml (1988), the ending chain approach illustrates how an individual's perceptions evolve throughout the consumption process, with a diminishing focus on product or service characteristics Quality assessment begins when individuals align their perceptions with initial expectations; successful evaluations lead to comparisons based on perceived benefits and necessary sacrifices Ultimately, purchasing decisions are influenced by the responsiveness of products or services, reflecting personal values that help explain the reasons behind choices, highlighting the importance of measuring individual values.
Values are long-term, stable beliefs that serve as psychological symbols of need, guiding individuals in conflict resolution, decision-making, and relationship management within society Rokeach (1973) categorizes values into object values, which pertain to the worth of objects through comparison, and individual values, which reflect personal ownership and beliefs A deeper understanding of individual values enhances comprehension of object values (Zeithaml, 1988; Feather, 1995) The influence of personal values on consumer behavior has been extensively studied (Beatty et al., 1985), revealing that grasping consumers' values is essential for effective engagement (Durgee, 1996) Values form the foundation for beliefs and attitudes, ultimately shaping behaviors (Posner et al., 1987; Madrigal and Kahle, 1994; Carlson, 2000), and individuals express their values and lifestyles through their choices in products and services (Kahle, 1988).
At the same time as their research, the authors have also given the impact of individual value on purchasing decisions.
Impact of personal value to the purchase decision
Values are likely to provide strong explanations of human behavior because they undertake as standards or ethical standards
Predict consumer behavior Henry, 1976, Vinson and
Munson, 1976, Bekker and Connor, 1981, Munson and McIntyre, 1979, Schwartz and Bilsky, 1987.
As a main theoretical foundation for psychological research on consumer value systems
Is "abstract ideal" that represents a person's
Understanding consumer perception is crucial, as it allows businesses to align their strategies with the personal values of consumers By recognizing these values, companies can gain deeper insights into consumer behavior and make informed decisions that resonate with their target audience.
A powerful tool for understanding and achieving consumption habits, as they can criticize and explain consumer attitudes and behaviors
Individual values are derived from broader social values and represent the personal choices and behaviors of an individual These values reflect how a person distinguishes themselves from various social norms and value systems that influence their behavior.
Values are the moral and ethical standards shaped by cultural influences, guiding individuals in forming behaviors, attitudes, and beliefs that align with societal expectations.
The selection and measurement of individual values are influenced by the chosen model, as highlighted by Agle and Caldwell (1999) This model prioritizes a specific dosing approach derived from a set of individual values, which helps to elucidate an individual's behavior in response to key issues Notable frameworks in this context include the Rokeach Value Scale (RVS) from 1973 and the Schwartz and Bilsky catalogs from 1990 Additionally, consumer analysis is informed by the Vinson et al chain ending model from 1977, the List of Values (LOV) by Kahle from 1983, and the values and lifestyle concepts proposed by Mitchell.
The 1983 Vals classification and Durgee's 1996 list of values offer accessible frameworks for problem analysis; however, challenges arise in selecting the appropriate scale and accurately assessing results These difficulties stem from the potential misalignment of predefined values with the specific issues at hand, which can lead to incorrect evaluations.
Scholars have explored the concept of personal values, leading to various definitions and components that shape individual values The following table illustrates diverse perspectives from researchers on the essential elements that constitute personal values.
The components of the personal value are used to assess the impact on the decision to buy.
1.1.1 The theory of comfortable life values
People seek to study and work diligently to enhance their lives and achieve comfort When equipped with the right tools and knowledge, they experience a sense of freedom and confidence in their relationships with others.
Rokeach (1973) suggests that a product enhances life by increasing comfort and fostering a greater sense of freedom and confidence in communication When users recognize the value of such a product, it significantly contributes to their overall comfort and quality of life.
The theory of comfortable life values highlights the varying attitudes of consumers regarding their personal values and purchasing decisions These values foster trust and enhance perceived value, ultimately influencing customers' choices when shopping for consumer products.
From there, it is possible to hypothesized H1 as follows: The higher the value of a comfortable life, the more it increases the shopping decisions of customers.
1.1.2 The theory of the value of peaceful life
Consumer procurement decisions
According to Philip Kotler, the process of passing consumer procurement decisions takes place through the following stages
Diagram 1.1: Model of stages of the process through procurement decisions
The procurement process initiates when consumers recognize their needs, a concept highlighted by Philip Kotler, who identifies that these needs stem from six internal and six external activities.
Internal stimulation encompasses fundamental human needs such as hunger, thirst, and the desire for love and admiration For instance, when a person experiences hunger, they naturally seek food; when thirsty, they crave a drink; and when feeling hot, they often wish to go swimming.
External stimuli, including time, environmental changes, consumer traits, and social factors like culture and gender, significantly influence individual behavior Additionally, personal characteristics and marketing strategies employed by professionals play a crucial role in shaping consumer responses.
At this stage, marketers must identify and anticipate consumer needs, understanding not only what those needs are but also the underlying reasons behind them It's essential to determine how consumers prefer to fulfill these needs, including the specific products and features they seek.
Philip Kotler suggests that strong demand creates a motivation for consumers to gather information about a product This information-seeking process can occur through internal or external sources If consumers find sufficient information through their internal search, they may not feel the need to seek external information.
Consumers utilize different sources of information to learn about products, which vary based on the specific item and the buyer's characteristics These sources can be categorized into four distinct groups.
- Source of personal information: information from family, friends, acquaintances, neighbors.
- Source of commercial information: information received from advertisements, sellers, written on the packaging, at fairs and exhibitions.
- Public information sources: objective information on the mass media, functional agencies of the government, organizations.
Experience information is derived from direct learning methods, such as personal contact and hands-on trials Different sources of information play unique roles in influencing consumer shopping decisions; for instance, commercial sources primarily provide notifications, while personal sources serve to affirm or evaluate choices The quantity and impact of these information sources on purchasing decisions can vary significantly based on the product type and the buyer's characteristics.
Before making a purchase, consumers evaluate information and assess the value of competing brands This assessment typically follows a structured process based on established principles and a specific order.
Consumers evaluate products based on a range of attributes, each linked to a specific function that enhances their satisfaction These product characteristics play a crucial role in determining the overall appeal and value to the consumer.
- Technical characteristics: physics: formula, composition, color, size, gauge
- Characteristics of use: duration of use, durability, specificity
- Psychological characteristics: beauty, elegance, personality, comfort, pride in ownership
- Combined characteristics: price, brand, packaging
Second, consumers tend to categorize attributes according to varying degrees of importance based on their needs to be satisfied
Consumers develop brand beliefs that influence their product evaluations, often opting for brands that provide satisfaction based on desired attributes These evaluations are shaped by psychological factors, economic conditions, and the shopping context Marketers must understand consumer brand assessment to adapt and enhance product features that align with consumer preferences, emphasizing the advantages of their offerings and correcting any misconceptions about important product characteristics.
Following an evaluation, consumers develop a shopping intention towards the brand that scores the highest, ultimately leading to a purchasing decision According to Philip Kotler, two key factors can influence this decision-making process before consumers finalize their choice.
Diagram 1.1: Steps to evaluate options to shopping decisions
The attitudes of relatives, friends, and colleagues significantly influence consumers' shopping decisions Whether these individuals offer support or express opposition can determine whether a consumer chooses to proceed with a purchase or abandon their shopping intentions.
Unexpected situational factors significantly influence consumer purchasing intentions, which are typically based on expected income, prices, and anticipated benefits When circumstances shift—such as job loss risks, rising prices, or products failing to meet expectations—consumers may alter or even abandon their shopping intentions altogether.
Consumers often mitigate risks in their purchasing decisions by seeking advice from friends, favoring well-known brands with warranties, and being cautious in their choices It is essential for marketers to comprehend the factors that contribute to consumers' risk awareness By providing valuable information, businesses can help consumers feel more secure in their decisions, ultimately enhancing the likelihood of purchasing their products and services.
After making a purchase, consumers often experience varying levels of satisfaction, which can influence their subsequent actions and reactions regarding the product and its usage.
The link between personal value and consumer procurement decisions
Previous studies, including those by Carman (1977), Williams (1979), Kropp, Lavack, and Holden (1999), and Doran (2009), indicate that personal values significantly influence consumer shopping decisions Consumer behavior is understood as a pathway to achieving a desired state or value, as documented in research by Gutman (1982), Reynolds and Gutman (1988), and Michon and Chebat (2004).
Customer perception of value is often viewed as a balance between price and quality; however, it is shaped by more complex and abstract factors Key variables influencing this perception include price perception, quality, benefits, and sacrifices Various researchers have explored and refined the concept of customer perception, with Zeithaml providing a notable definition that encapsulates its multifaceted nature.
Value building awareness in customer research emphasizes that consumer assessments of a product are based on perceived benefits versus sacrifices (1988, p 13) This definition highlights that value encompasses not only functional aspects like quality and price but also social, emotional, and knowledge components (Sheth et al., 1991) Customer satisfaction, therefore, reflects the perceived value received during a transaction (Woodruff and Gardial, 1996) Consequently, it is crucial for managers to understand customer value before implementing strategies to measure and monitor satisfaction, as value is fundamentally a perception assessment that influences consumer behavior.
Some theoretical models related to factors in which the decision to buy 17
The Theory of Reasoned Action (TRA), developed by Ajzen and Fishbein in 1975, serves as a foundational framework in socio-psychology and consumer behavior research (Puschel et al., 2010) This theory posits that behavioral intentions are influenced by two key factors: individual attitudes and subjective norms Individual attitudes reflect a consumer's positive or negative beliefs regarding a product's attributes, while subjective norms are shaped by personal beliefs and motivations The relationships within the TRA model are illustrated in Diagram 1.3.
TRA comes from the assumption that the behaviors belong to reason, i.e those that the conscious individual came up with first or could control (Ajzen and Fishbein,
1975) However, some authors are interested in situations where individuals cannot fully control their behavior, which is the main reason why some authors criticize this model (Hansen and associates, 2004).
The TAM (Technology Acceptance Model) is considered a special case of the TRA (Hernandez associates, 2009) reasonable action theory model Proposed by Davis,
D Fred, and Arbor, Ann, (1989), TAM predicts the use of information technology and seeks to explain the user's acceptance of the use of information technology. Intended behavior in the (TAM) is influenced by external factors on internal factors such as the user's beliefs, attitudes and opinions and between the user's attitudes, opinions and behaviors that have a cause and effect relationship with each other. TAM suggests that the intention to use this new technology will lead to actual customer use behavior In particular, there are two decisive factors in affecting attitudes to use new technology: PEOU-Perceived Ease of Use and PU-Perceived Usefulness An easy-to-use technology application that makes it easy for users to use and control themselves, reducing time spent learning how to use technology and improving user performance (Davis, 1989).
Diagram 1.4: Technology Acceptance Model (TAM 1989)
While the Technology Acceptance Model (TAM) and the Theory of Reasoned Action (TRA) are effective in predicting intentional behaviors, they have limitations, particularly in scenarios involving multiple behaviors These models often fail to account for the complexities of behavior that extend beyond a single action However, the TRA can be adapted to address situations that involve chains of multiple behaviors, as noted by Sheppard, Hartwick, and Warshaw (1988).
1.4.3 Theory of Planned Behaviour (TPB)
Ajzen's Theory of Planned Behavior (TPB), introduced in 1991, builds upon the Theory of Reasoned Action (TRA) established by Ajzen and Fishbein in 1975 The TPB addresses the limitations of the TRA, particularly in predicting consumer behavior in scenarios where individuals lack full control over their actions, as noted by Hansen and colleagues in 2004 This development aims to provide a more comprehensive understanding of behavioral intentions and actions.
Diagram 1.5: Theory of Planned ehavior (TPB)
Subjective norm Behavioural intention Behaviour
Ajzen's Theory of Planned Behavior (TPB) enhances the Theory of Reasoned Action (TRA) by incorporating the factor of behavioral control awareness This model emphasizes that an individual's perception of behavioral control affects their behavioral intentions Like TRA, TPB prioritizes understanding clients' intentions rather than their actual behaviors It posits that customers' actual behaviors are shaped by their intentions and their perceptions of control over those behaviors Additionally, a customer's behavioral intention is influenced by their attitudes, subjective norms, and perceptions of behavioral control.
However, like TAM, a lot of authors have added new variables to this model to better reflect the characteristics of consumer behavior (Cheung and associates,
In their research, Lee and Ngoc (2010) integrated trust into the Theory of Planned Behavior (TPB) model to examine the online buying intentions of Vietnamese students, revealing a strong correlation between customer beliefs and their purchasing intentions Similarly, Pavlou and Fygenson (2006) expanded the TPB model to analyze online consumer behavior, emphasizing the significance of factors such as technology awareness (including perceived usefulness and ease of use), trust, customer skills, available resources (time and money), and product characteristics (value and evaluative capabilities) in predicting the success of E-Commerce transactions.
1.4.4 Theory of Perceived Risk (TPR)
Bauer's Theory of Perceived Risk (TPR) highlights that risk perception in online shopping is influenced by two key factors: awareness of product or service risks and awareness of risks related to online transactions According to Bauer (1960), understanding risk perception is crucial as it significantly impacts consumer behavior, particularly in converting casual web browsers into actual buyers.
Identifying risks in PRT online trading is crucial for consumer protection, encompassing four primary types of risks: privacy concerns, security issues related to authentication, non-repudiation challenges, and the overall perceived risk associated with online transactions.
Diagram 1.6: Theory of Perceived Risk (TPR)
The purchasing behavior of consumers is positively influenced by two key factors: risk awareness associated with online trading and risk perception related to specific products or services As consumers become more aware of the various risks linked to e-commerce, their purchasing behavior tends to increase or decrease accordingly.
In 2001, authors Joongho Ahn, Jinsoo Park, and Dongwon Lee developed the E-commerce Adoption Model by combining the Technology Acceptance Model (TAM) with risk perception theory Their research highlighted key factors influencing computer acceptance and user behavior, which are crucial for converting internet users into leads The study emphasized that awareness of usefulness and ease of use are essential, while minimizing risk awareness associated with products, services, and online transactions is vital for successful e-commerce adoption.
Perceived Risk in the Context of
Perceived Risk in the Context of
THE STUDY
Company overview
2.1.1 History of formation and development
- Vietnamese name: Công ty Cổ phần Tataci Việt Nam
- International transaction name: Vietnam Tataci Joint Stock Company
- Head Office: House No.1, Niche 3, Lane 9, Group 2, Phu Luong Ward, Ha Dong District, Hanoi
- Rep Office: P20.04 CT2 Vimeco Nguyen Chanh, Trung Hoa, Cau Giay, Ha Noi
- Email: info.tataciland@gmail.com
- Director of the company: Nguyen Van Kien
Vietnam Tataci Joint Stock Company (formerly InvestLand) was established on July
Founded in 2013, our company has spent nearly seven years establishing itself as a leader in the real estate business distribution system With a dedicated and skilled team, we have successfully completed numerous significant projects, solidifying our reputation in the industry.
Tacati Land is establishing itself as a leading real estate distributor and investment management firm, while also aiming to become one of the most respected real estate brokers in Vietnam.
Tataci aims to establish itself as a leading real estate brokerage, targeting a position among the top three by 2022 To achieve this goal, we prioritize continuous improvement and self-awareness among our team, ensuring that our services consistently enhance Our guiding principle is to strive for daily progress, embodying the mindset that we must always be better than we were yesterday.
Vietnam Tataci Joint Stock Company's organizational structure comprises a Board of Directors, a Board of Management, and several key departments, including Project Development, Communication, Sales, and Legal This structure is visually represented in Figure 2.1.
Figure 0.1: Organizational structure of Vietnam Tataci Joint Stock Company
Functions and powers of departments in the company
The Project Development Department plays a crucial role in advising the Board of Directors on managing the project implementation process Its primary focus is to research and identify effective solutions that align with market demands, enabling businesses to refine their strategies and achieve targeted economic growth.
The Communication Department plays a crucial role in advising the company on communication strategies, brand promotion, and public relations initiatives It manages the company’s website and serves as the primary liaison between the Board of Directors and local as well as central media outlets Additionally, the department is responsible for organizing and maintaining a comprehensive archive of the company’s images and videos for effective utilization.
The Sales Department is responsible for creating comprehensive plans and strategies for the company's business operations on a monthly, quarterly, and annual basis, guided by the General Director They continuously monitor and adjust business activities in response to market fluctuations, including variations in input materials and output products, to ensure that planned targets are met.
Human Rights Department: Plan and implement recruitment to meet the operational and development needs of the business.
• Reach out to the media to bring recruitment information closer to potential candidates.
Create links with quality human resources: Universities, Colleges, vocational training units in accordance with the business field of the unit.
Directly propose to superiors ideas to improve the quality of work of employees at the company and human services in particular.
Participate in solving related issues with recruitment legality.
Legal department: Advising and advising the Executive Board, units under Bao
Minh on legal matters related to operations Update, system and institutions of legal documents.
In today's competitive market economy and the context of international economic integration, prioritizing people is essential for businesses aiming to thrive Tataci, JSC recognizes this need and is progressively investing in its human resources, as evidenced by the professional qualifications statistics outlined in Table 2.1.
Numner Qualifications Quantity (person) Density (%)
Table 2.1: Qualifications (Source: Administrative Department – Vietnam Tataci Joint Stock Company)
According to Table 2.1, the company currently employs 312 individuals, primarily consisting of ordinary workers, with a limited number of university and college graduates This lack of skilled personnel has hindered the effective management of the modern machinery and equipment that the company is investing in, leading to instances of misuse that result in production damage and waste.
The senior team in the company primarily learns through practical experience, enhancing their skills in techniques and economic management While some have successfully adapted to the market economy and seized business opportunities to foster growth, there remains a challenge with a few managers lacking proficiency in management operations and strategic development This gap in management capabilities negatively impacts the overall efficiency of production and business activities within the enterprise.
2.1.3 Business situation of the company
Despite facing intense competition and price fluctuations, the company has navigated a challenging operating environment The dedication and efforts of all employees have enabled the company to overcome obstacles and leverage its strengths to achieve its goals, as evidenced by the business results detailed in Table 2.2.
1 Sales revenue and service provision
3 Net revenue in sales and service provision
4 Cost price of goods sold
5 Gross profit on sales and service provision
10 Net profit from business activities {(30
14 Total accounting profit before tax
15 Current corporate income tax expenses
18 Basic profit per share (VND)
Table 2.2: Report on operating results over the years (Source: Accounting Department – Vietnam Tataci Joint Stock Company)
The business results report for Tataci, JSC, indicates an uneven increase in total sales and service revenue over the years, with a revenue ratio of 1.17 in 2018 compared to 2017, and 1.22 in 2019 relative to 2018, reflecting an upward trend due to adjustments in the company's operating model However, in 2020, the revenue dropped to 0.91 compared to 2019, highlighting the challenges the company faces amid intense market competition To achieve sustainable growth, it is crucial for the company to implement effective development policies.
The company's profit has experienced significant fluctuations, with a decrease evident in the profit ratios of 1.21 in 2017 compared to 1.07 in 2019 Initially, strict management measures were implemented in the production process, but by 2020, profits declined due to high production and publication costs To foster more stable growth, the company must implement strategies to reduce product costs while meeting customer demands.
Situation of factors affecting customers' decision to buy a house at
2.2.1 Consumer characteristics of home products at Vietnam Tataci Joint Stock Company
Tataci JSC has demonstrated significant success in the real estate market, achieving positive results across various sectors The company has shown consistent and stable business growth, solidifying its position within the industry.
Regarding real estate brokerage and business activities, the company has signed exclusive distribution contracts for commercial apartment projects for sale Some typical projects can be mentioned as follows:
Sails Tower Ha Dong Apartment Project
Truong Phu real estate project is the exclusive distributor of the Sails Tower project, which is developed by Khai Hung Company Limited and receives financial backing from Lien Viet Post Bank.
In Hanoi, a unique product is available for customers with a moderate income, specifically families earning between 15 to 20 million VND monthly With an initial investment of approximately 30% of the contract value, buyers can secure an apartment within just one year This innovative solution allows customers to pay monthly interest rates comparable to rental costs, making homeownership more accessible than ever, thanks to a collaboration between the investor and distributor.
Investor: - Khai Hung Company Limited
Design and construction consultant: Vinaconex Xuan Mai Design Consultancy
Joint Stock Company, Long Giang TSQ Stock Company
Sails Tower, situated on Road 70 in Kien Hung ward, Ha Dong district, offers convenient access to commercial centers, hospitals, schools, and parks Spanning an area of 9,382.1 m² with a construction footprint of 3,544 m², the project features two towers, A and B, with 30 and 27 floors respectively It includes 51 floors of apartments, one basement, and three service floors, along with a variety of living amenities Inspired by the design of sails, both towers are slender, ensuring that all 732 apartments receive ample natural light Accommodating approximately 2,800 residents, the apartments are thoughtfully designed with two bedrooms, two bathrooms, and a living room, with sizes ranging from 46.47 m² to 107.8 m².
The building features three adjacent commercial floors that offer a comprehensive range of utility services, allowing residents to shop conveniently on-site The first floor is equipped with a variety of facilities, including sports centers, European-standard swimming pools, and entertainment areas for families and children Prospective customers can easily visit sample apartments, simplifying their decision-making process Construction is currently progressing rapidly, with an anticipated handover to customers set for the fourth quarter of 2019.
Trung Van CT2 Project - Vinaconex3
Vinaconex 3 Trung Van project is in the overall planning of Trung Van, Bac Tu Liem district, Hanoi city Located on le Van Luong street with an area of 23,782m2, the project includes consecutive houses, garden houses, luxury apartments, offices for rent, commercial centers, supermarkets The project is planned in harmony with modern style, technical and social infrastructure system to ensure criteria in type I urban areas.
Investor: Construction Joint Stock Company N03
Vinaconex 3 Trung Van project consists of 2 apartment buildings CT1 and CT2,garden blocks, TT3 villas; flower gardens, parking lots, entertainment areas are arranged uniquely and harmoniously, all creating an ideal living space High-rise apartment building is a complex of 02 buildings with 17 floors with nearly3,823m2, the total investment of VND 1,500 billion The 1st-floor service and commercial center is a convergence of the world's leading brands to help satisfy the shopping needs of the building's residents; from the 2nd to the 17th floor includes more than 300 luxury apartments with an area of 79m2 – 150m2; garden houses and successor houses with reasonable area and 74m2 – 80m2 for successor houses; garden houses with an area of 145m2 – 215m2 The project is currently in the process of being completed and is expected to hand over to the house in the first quarter of 2019.
In the real estate sector, Truong Phu's project market serves as the primary platform for brokerage activities and transactions, ensuring higher accuracy and reliability of information This professionalism in operations not only enhances the company's reputation but also attracts an increasing number of customers seeking trustworthy real estate services.
The company's activities in areas such as real estate auctions, advertising, management, financial advice, investment, and corporate restructuring consultancy have not yet seen significant growth However, these sectors are actively being refined and integrated into the overall business strategy The outcomes of the company's comprehensive business operations are detailed in the table below.
Human Rights 80 sales staff 150 sales staff
Table 2.3: Business results of Vietnam Tataci Joint Stock Company
(Source: Accounting Department- Vietnam Tataci Joint Stock Company)
In 2019, despite being established during a downturn in the real estate market, the company generated an encouraging revenue of VND 15 billion However, after accounting for operating expenses and taxes, it faced a negative profit of VND 370 million, highlighting initial market access challenges and high marketing and operational costs By 2020, the company experienced steady growth, with total assets rising to VND 62 billion from VND 47 billion the previous year Successful real estate projects, including Sails Tower and Thang Long Garden, significantly boosted revenue, which reached VND 28 billion by September, nearly doubling the previous year's figures Additionally, the company achieved a profit after tax of VND 8 billion, strengthening equity and improving liability balance To support business expansion, the sales team was increased to 150, alongside a core staff of about 40.
In 2020, the company facilitated 50-60 transactions each month, with apartment values ranging from 700 million to 2 billion VND This resulted in an average monthly revenue of 5 billion VND and a profit of 1.5 billion VND The revenue growth throughout 2020 compared to the same period in 2019 highlights the significant development and continuous efforts of Tataci.
JSC is poised for significant growth in the upcoming months and years, driven by a team of highly specialized leaders and the dedicated efforts of its sales staff This project supermarket is set to achieve remarkable advancements and make substantial strides in Vietnam's real estate market.
2.2.2 Consumer demand for home products
Vietnam is currently undergoing significant industrialization, modernization, and urbanization, leading to the continuous expansion of urban areas According to the government's master plan for urban system development, the national urbanization rate is projected to reach 38% by 2025, with a substantial increase in housing demand in urban centers This demand is driven by both natural and mechanical population growth, as well as changing household structures As urbanization progresses, the necessity for improved living standards and increased housing space per capita becomes evident Furthermore, urban development initiatives, such as road expansion and social infrastructure projects, require additional housing resources for site clearance and resettlement.
Vietnam's real estate market continues to thrive, yet significant supply and demand imbalances persist across various segments, intensifying competition among real estate businesses To remain competitive, marketers must recognize that purchasing an apartment is a critical decision for consumers, often involving a complex decision-making process fueled by high interest For many customers, acquiring an apartment requires long-term financial planning and saving, underscoring the importance of understanding buyer behavior in this dynamic market.
In densely populated cities like Hanoi and Ho Chi Minh City, the rapid growth of condominiums caters to a diverse market, ranging from affordable to luxury options This trend reflects the increasing preference for apartment living among urban residents Conversely, in medium-sized cities such as Hai Phong, where land is still relatively plentiful, the demand for apartment living is not as pronounced, making it less of a prevailing trend.