Determinants Influencing Consumer Behaviour of Apartment Purchasing in Ho Chi Minh City and Policy Implications

Abstract

This study aims to estimate the factors influencing customers' decisions to purchase apartments in Ho Chi Minh City, considering the mediating role of apartment-buying intention. Drawing upon the Theory of Reasoned Action (TRA) and the Theory of Planned Behavior (TPB) models, the study identifies six variables—attitude, subjective norms, perceived behavioral control, perceived quality, financial capability, and governmental policies—that impact consumers' decisions to purchase apartments through the mediation of purchase intention. Using qualitative and quantitative methodologies, the study finds that, except for perceived behavioral control, the remaining five variables have a statistically significant positive impact on customers' decisions to buy apartments in Ho Chi Minh City. These findings have important implications for both the government and real estate developers. The government can utilize the study's insights to develop effective policies and regulations that support the housing market and encourage apartment purchases. Real estate developers, on the other hand, can leverage the identified factors to improve their marketing strategies, focusing on enhancing perceived quality, financial feasibility, and addressing customers' attitudes and subjective norms. By understanding these determinants, developers can better meet customer preferences and expectations, leading to increased apartment sales. Overall, this study provides valuable insights into the factors influencing customers' decisions to purchase apartments in Ho Chi Minh City, with apartment-buying intention playing a mediating role. The findings contribute to the existing literature and offer practical implications for the government and real estate developers, ultimately promoting a thriving housing market in the city.