ABSTRACT:
Based on related theories and previous researches, this study proposes an initial model of the perceived value of apartment consisting of 6 factors. After using the exploratory factor analysis (EFA) to verify observable variables, the model had 2 new factors, namely Connectivity of the apartment and Elevator. However, the use of Cronbach’s alpha confirmed 7 factors of the study’s model, namely Safety level, Enviroment, Contruction, Location, Convenience, Service price, and Connectivity of the apartment.
Keywords: apartment, connectivity of the apartment, apartment model.
1. Introduction
According to the Ho Chi Minh City General Plan for Construction with an orientation to 2030 and the Urban Construction and Renewal Program, construction activities in the city will boom in the coming time. This means that the supply and the demand for apartments will increase in the coming years. According to Ho Chi Minh City Department of Construction, as of the beginning of 2019, in the city, there are 77 projects that are eligible for future housing sales, including 28,316 houses. In particular, the high-end segment has 8,502 units, accounting for 30%; the mid-end segment has 12,833 units, accounting for 45.3%; and the affordable segment has 6,981 units, accounting for 24.7%.
2. Study purposes
Helping people in need of buying an apartment determine the real value of the apartment, thereby considering financial resources to be able to choose accordingly.
Helping apartment investors to better understand the needs and tastes of customers with real needs, and to have a plan in order to actively develop apartment products to suit each customer.
Helping the bank in supporting loans and assessing loan repayment ability of apartment investors as well as apartment buyers.
3. Subjects and research methods
This study’s subjects are individual customers with average income.
This study’s scope is in Ho Chi Minh City.
Survey method: through questionnaire in the form of direct survey. Based on the data collected from the survey, the authors analyze the data with the SPSS 20 software. Based on the analysis results and the consultation of customers (those who are looking to buy or already own an apartment), investors and long-term employees in the real estate and construction sectors, this study presents objective and honest opinions.
Researching time: from 10/2020 to 09/2021
The survey sample of 354 questionnaires is really small compared to the number of people who have bought and owned apartments in Ho Chi Minh City.
4. Results and analysis
- Total investment capital: more than VND 400 billion.
- Construction density: 40%.
- Total land area: 4,606 m2.
- Project scale: 02 basements, 21 apartment floors & 01 roof-deck (14 apartment floors and 05 commercial floors and 02 basements).
- Quantity: 276 apartments. Type of bedroom: 02 - 03 rooms.
- Apartment area: 62.44m2 - 85.1m2.
Figure 1: Location map of the project
4.1. In case the customer has a project cost estimate table
Table 1. Total construction investment costs
(Unit: thousand VND)
Source: Refer to NAGECCO's construction costs estimates table
According to Table 1, we can calculate the basic construction price as follows:
In which, Total construction investment costs include construction costs, equipment costs, project management costs, construction investment consultancy costs and other costs, contingencies and land costs.
Basic construction price = Apartment m2price * Apartment area
In which, Apartment m2 price is the price calculated above (17,227,475 VND/m2); Apartment area: is the area of each apartment announced by the project investor.
4.2. In case the customer does not have the project costs estimate table
From the perspective of buyers for the purpose of living. They will not have Table 1.
The apartment m2 price excluding land costs (including VAT) is as follows:
In which, Total construction investment costs include construction costs, equipment costs, project management costs, construction investment consultancy costs and other costs, contingency.
Difference in apartment m2 price (with and without land costs) = 17,227,476 - 13,373,000 = 3,854,476 VND/m2
Price of 1m2 of land at the time of making the estimate = 106,122,000,000/4,606 = 23,039,947 VND/m2
Land price conversion coefficient = (3,854,476 / 23,039,947) x 100 = 16.73%
Construction conversion coefficient between apartments and townhouses = 13,373,000 / 6,100,000 = 2.19 times
Townhouse construction price is the price in the package form which can be consulted from many sources, such as websites of construction companies, construction contractors, etc. when buying an apartment.
Table 2. Quotation for package housing construction in 2020
At this time, the basic construction price of the apartment will be calculated as follows:
Basic construction price = (Construction costs per m2 + Land costs per m2) * Apartment area
In which:
Construction costs per m2 = Package townhouse construction price*Construction conversion coefficient = Package townhouse construction price*2.19
If the apartment has been completed and put into use before, we must deduct the depreciation of assets. An apartment as well as a townhouse after about 20 years will need major repairs once so the author recommends the depreciation period of construction costs for 20 years. The depreciation method that can be used is straight-line depreciation, that is, each year the depreciation is 5% on construction costs. From that:
Construction costs per m2 = (Package townhouse construction price * Construction conversion coefficient) - Depreciation of assets = (Package townhouse construction price * 2.19) - Depreciation of assets
Land costs per m2 = foundation soil price * conversion coefficient of land = foundation soil price * 16.73%
The market price of foundation soil can be referenced from many sources (real estate websites, real estate brokers, people around the project ...) at the time of purchase.
Figure 2: Market prices in Ho Chi Minh City
(Unit: million VND/m2)
The survey consists of 40 Likert scale questionnaire and 5 qualitative questionnaire including apartment price at the time of survey, area, floor, district, and number of members living in the apartment.
In the first EFA analysis: The rotated loading matrix shows that there are 08 factors made up of 40 items. The CT03 variable (Large ground floor of building has a positive impact on the value of the apartment) has a Factor Loading of < 0.5, so we remove the CT03 variable and run the second EFA analysis again.
In the first EFA analysis: The rotated loading matrix shows that there are 08 factors made up of 39 items. The CV05 variable (Entertainment areas (Bars, Pubs, restaurants, etc.) near the apartment have a positive impact on the value of the apartment) has a Factor Loading of < 0.5, so we remove the CV05 variable and run the third EFA analysis again.
In the third EFA analysis: The rotated loading matrix shows that there are 08 factors made up of 38 items. The CV01 variable (Park area near the apartment has a positive impact on the apartment) has a Factor Loading <0.5 so we remove the CV01 variable and run the fourth EFA analysis again.
In the fourth EFA analysis: The rotated loading matrix shows that there are 08 factors made up of 37 items. The CV07 variable (Swimming pool located in the apartment area has a positive impact on the value of the apartment) has a Factor Loading of <0.5, so we remove the CV07 variable and run the fifth EFA analysis again
And in the fifth EFA analysis: The rotated loading matrix shows that there are 08 factors made up of 36 items.
Figure 3: Cronbach’s Alpha
Elevator: This factor has only 01 item which cannot run the Cronbach’s alpha so we eliminate this factor.
Table 3. Model Summaryh
Regression analysis:
Equation: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7.
Correlation coefficient R = 0.731 has shown that the independent variable is included in the model (7 variables). Adjusted R Square from R Square is used to better reflect the conformity of the multivariate regression model (0.535) because it is not dependent on the magnification deviation of R2. Thus, with an adjusted R2 of 0.535, the model's compatibility with the observed variable is relatively good and the dependent variable of other value of the apartment is explained by 07 independent variables in the model of 53.5%.
Durbin - Watson coefficient = 1.965 for 7 independent variables and 354 observations, showing that the model has no residual of variance change.
Regression coefficient: The p-value coefficient of constant = 0.154 > 0.05 indicates that the constant is not statistically significant. Other variables with p-value are less than 0.05 (5%), so they are statistically significant. Besides, all variables have VIF <10, so there is no multi-collinear phenomenon.
Table 4. Coefficientsa
a. Dependent Variable: PerceivedValue
Therefore, the model to determine the perceived value of the apartment is expressed according to the unstandardized coefficient as follows: (Unit: VND):
PerceivedValue per m2 = 1671358.826 * MeanConnect + 873656.743 * MeanCV - 874946.802 * MeanEnv + 758708.969 * MeanLoc - 549000.531 * MeanSVP + 504591.598 * MeanCT + 287127.166 * MeanSC
Therefore, the model determining the factors that affect the perceived value of the apartment is expressed according to the standardized coefficient as follows:
PerceivedValue per m2 = 0.528 * MeanConnect + 0.259 * MeanCV - 0.292 * MeanEnv + 0.218 * MeanLoc - 0.151 * MeanSVP + 0.147 * MeanCT + 0.94 * MeanSC
In which, the most influencing factor is MeanConnect with the influence level of up to 1.67 million VND for each assessment point (on a maximum scale of 5 points). The lowest influencing factor is MeanSC because it limits strangers to the apartment to ensure security but also causes obstacles when the apartment buyer feels uncomfortable when picking up friends or family to visit.
In addition, MeanSVP includes high management fees, parking fees, electricity, water, internet, etc. that decrease PerceivedValue.
Figure 4: Factors affecting perceived value
Unit: VND/m2
5. The conclusion
Price 1m2 of apartment = constructions cost + perceived value of the apartment
Normally, customers cannot access the Table of total construction investment costs of the investor, so the basis for customers to calculate the basic construction price is to apply the following formula:
Basic construction price = (Construction costs per m2 + Land costs per m2) * Apartment area
In which:
Construction costs per m2 = Package townhouse construction price * Construction conversion coefficient = Package townhouse construction price * 2.19
If the apartment has been completed and put into use before then we must deduct the depreciation of assets. An apartment as well as a townhouse after about 20 years will need major repairs once so the author recommends the depreciation period of construction costs for 20 years. The depreciation method that can be used is straight-line depreciation, that is, each year the depreciation is 5% on construction costs. From that:
Construction costs per m2 = (Package townhouse construction price * Construction conversion coefficient) - Depreciation of assets = (Package townhouse construction price * 2.19) - Depreciation of assets
Customers must determine the package townhouse construction price as a package (turnkey) price that can be referenced from many sources (websites of construction companies, construction contractors ...) at the time to decide to buy an apartment. Note that the townhouse construction price may change over time.
Land costs per m2 = foundation soil price * conversion coefficient of land = foundation soil price * 16.73%
The market price of foundation soil can be referenced from many sources (real estate websites, real estate brokers, people around the project ...) at the time of purchase.
Note: This research was funded by Nguyen Tat Thanh University, Ho Chi Minh City, Vietnam.
REFERENCE:
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CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN GIÁ THỊ TRƯỜNG
CỦA CĂN HỘ CHUNG CƯ THƯƠNG MẠI CHO NGƯỜI MUA
CÓ THU NHẬP TRUNG BÌNH TRÊN ĐỊA BÀN QUẬN 8
VÀ QUẬN THỦ ĐỨC, THÀNH PHỐ HỒ CHÍ MINH
• TS. TRỊNH XUÂN HOÀNG1
• Th.S NGUYỄN THỊ MỸ ĐIỂM1
• Th.S NGUYỄN XUÂN HẢI1
1Đại học Nguyễn Tất Thành
TÓM TẮT:
Dựa trên các lý thuyết và các nghiên cứu trước đây, nghiên cứu này đề xuất mô hình giá trị cảm nhận của 1 căn hộ gồm 6 yếu tố. Việc áp dụng phương pháp phân tích nhân tố khám phá (EFA) đối với các biến quan sát thuộc các yếu tố ban đầu đã tìm ra thêm 2 nhân tố mới trong mô hình nghiên cứu, gồm: khả năng kết nối của căn hộ và thang máy. Phương pháp phân tích độ tin cậy Cronbach’s alpha được áp dụng và cho thấy mô hình nghiên cứu cuối cùng gồm 7 yếu tố: Mức độ an toàn, Môi trường, Xây dựng, Vị trí, Tiện ích, Giá dịch vụ, và Khả năng kết nối của căn hộ.
Từ khóa: căn hộ, khả năng kết nối của căn hộ, mẫu căn hộ.
[Tạp chí Công Thương - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ, Số 21, tháng 9 năm 2021]
