Factors affecting home purchase decisions in residential housing projects: a case study of Duc Hoa district, former Long An province

Abstract

Identifying the factors affecting home purchase decisions plays a critical role for real estate developers, as it enables them to understand buyers’ actual needs and to provide products that better meet market demand. This study focuses on identifying the factors affecting home purchase decisions in residential housing projects in the former Long An province. The research was conducted among respondents aged from 25 to over 50 who are currently residing in the former Long An province and surrounding areas. A total of 236 valid questionnaires were collected, and the factors affecting home purchase decisions were analyzed and ranked using the relative importance index (RII). The results indicate that “future value of the house” is the highest-ranked factor (RII = 0,942). This is followed by “reputation of the contractor and developer” (RII = 0,917), “reasonable selling price relative to the house location,” and “developer’s project development experience” (both with RII = 0,915), indicating that buyers place strong emphasis on credibility, transparency, and project implementation capacity. The factor “flexible payment schemes” (RII = 0,908) is also considered important in the context of economic volatility and limited access to credit. Based on these findings, the study recommends that developers orient their project development strategies toward modernity, sustainability, and flexibility, enhance information transparency, and build reputable brands to better respond to market expectations.