Factors affecting the decision to choose a high-end apartment: Empirical evidence in Vietnam

Abstract

In recent years, high-end apartments have been chosen by an increasing more customers due to their advantageous features and consumer trends. Therefore, investigating the elements that influence the decision to select a luxury apartment is crucial in providing real estate companies with recommendations, concepts for new projects and strategies to draw in clients. This research analyzes the factors that influence the decision to choose a high-end apartment.  This study is based on the psychological makeup and personal preferences influencing the standards for selecting a high-end apartment. The author used exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and second-order linear structural equation modeling (SEM) on the research sample surveyed in Hanoi, the capital of Vietnam. This research studied over 300 observations through quantitative analysis using SPSS software. The research results showed five groups of factors that positively impact the decision to choose a high-end apartment:  (1) Lifestyle (2) quality of apartment 3) financial factors 4) social environment 5) amenity.  This study also offers some suggestions to bring the supply and the demand of luxury apartments in Vietnam closer together thereby helping the Vietnamese real estate market develop sustainably.