The role of government policy, social infrastructure and Fengshui in intending to buy tourism real estate

Abstract

People typically purchase residential properties for two reasons: to live in or invest. However, both purposes necessitate careful consideration before deciding because high financial costs are involved, and housing loans are typically considered necessary for this purpose. Customers’ demands are constantly changing, becoming more complicated with higher requirements. The focus of this research is on tourism real estate selection. This market in Vietnam is still new and emerging and has encountered numerous issues regarding government policy, finance, and land authorization for constructing, owning, and managing. Because the form of tourism real estate is still new, customers are hesitant about investing in or buying these properties. Hence, to compete in the current fiercely real estate industry, real estate firms must understand their customers’ expectations by frequently involving customer research in the company’s strategy. However, there is still a lack of research on the connection between these factors and individual expectations in the well-known philosophy of the Theory of Planned Behavior (TPB), leading to behavioral intentions. Therefore, to fulfill the gap in the previous literature, this paper aims to investigate the connection between these factors with core variables of TPB, hence, addressing the current problems in the real estate industry. 471 valid respondents in Vietnam were collected for data analysis through two survey approaches. PLS-SEM was used to test hypotheses due to the relationship complication in the conceptual models. The results show that government policy influences attitudes and perceived behavioral control, whereas social infrastructure affects social norms and perceived behavioral control. Moreover, Fengshui ambient condition also positively influences all three core factors: attitudes, social norms, and perceived behavioral control. Finally, these factors impact on intention to buy tourism real estate. Through results, this paper has developed a purchase intention model through social aspects of the tourism real estate industry. In addition, this paper demonstrates the connection between social factors and individuals’ expectations for a purchase intention, providing the importance of the government’s role, architecture style, and social infrastructure in the marketing literature of the real estate industry. As a result, managers and governments need to take advantage of new releases of government regulations in time to enhance customers’ positive attitudes toward purchasing tourism real estate. Moreover, social infrastructure and Fengshui conditions are crucial to establishing social norms and perceived control, aiming to leverage the intention to purchase tourism real estate. Thereby, recommendations of marketing strategies based on these findings were suggested to attain the optimal result for sales. Finally, this research also includes some limitations. Hence, suggestions for further research were also provided, such as possible moderation, possible mediating effects, or control of data bias.