Q2 2021 Real Estate Report: From "Zero Capital" to Realizing the Dream of Apartment Ownership

Thanks to a business strategy heavily focused on pricing policies, the apartment real estate market showed signs of recovery in Q2 2021. Notably in May 2021, the bold move by Vinhomes Smart City & Masterise Homes to introduce a solution for the "settle down and thrive" problem with "zero capital" generated massive discussion volumes and directly impacted the demand for apartment ownership among many target customers.

With over 360,000 discussions from users in Q2, Kompa conducted an overview study of the Modern Apartment / Condominium Real Estate market during the Q2 2021 period. The report summarizes and analyzes trends, customer concerns, and the factors that drive customers to consider purchasing apartment real estate.

This report was conducted by Kompa – a provider of technology solutions based on Big Data and AI platforms to help businesses thrive in the Digital Era.

Market Trend Insights:

Investors shifting focus toward young customers

From the multi-sector ecosystem platform of Vingroup, Vinhomes Smart City accounts for more than 1/3 of the discussions in the Top 10 Brands with the highest Share of Voice in the apartment/condominium project real estate segment.
Particularly on May 24, 2021, this brand launched the "Vinhomes Priority" campaign targeting young customers with a "3 No" message: "No capital – No financial pressure – No waiting," hitting the psychological sweet spot of many customers who want to invest in a home while young, even without sufficient initial financial capacity.
The program not only attracted significant customer interest but also demonstrated the long-term vision of Vinhomes Smart City by shifting focus toward the 25–29 age group, which accounted for 39%; however, the middle-aged group from 40–45 is still considered a potential customer base for the brand in the future.(Link)

The market revitalized in May 2021

At the beginning of the year, the apartment/condominium real estate market had not yet fully recovered, with transaction volumes down more than 50% compared to the same period last year. However, by the beginning of Q2 2021, thanks to the launch of stimulus programs and price controls, the apartment/condominium real estate market gradually returned to the race.

Notably in May 2021, many brands began implementing a series of new stimulus programs to boost transaction volumes, especially "Vinhomes Priority" from Vinhomes & "Nhà đổi nhà" from Masterise Homes.

Vinhomes Smart City was a pioneer in best understanding buyer needs. Among the 5 brands, Vinhomes Smart City apartments held an overwhelming share of discussion across most factors of highest customer interest. Amenities, Price & financial support programs, and Living Space were the top 3 discussion topics regarding Vinhomes apartments.

With its multi-sector ecosystem, Vinhomes apartment amenities were noted for providing great convenience to residents. The brand was also noted for its competitive pricing and incentive policies when purchasing apartments.

At this stage, customers considering apartment real estate purchases primarily relied on the reputation of the investor. Increasing promotional activities, ensuring security, and possessing favorable locations helped apartment real estate brands strengthen their competitive advantages. Amenities and living space factors are added values that stimulate the desire to own an apartment among users.

While Vinhomes Smart City focused on the young customer group, Masterise Homes' strategy was a form of Upselling, encouraging customers to experience high-class living spaces at more reasonable costs.
Supporting both of these programs was the strong backing of Techcombank (Link). Previously, customers were required to pay a portion of the contract upfront (usually 20–30%), but today, they can borrow up to 100% with mortgage account conditions. The bold move by the two developers and the support from Techcombank helped accelerate the liquidity of apartment real estate projects, while simultaneously creating leverage to boost housing demand during this period.

Facebook & Forums dominate the sub-4.5 billion VND apartment segment

Trends in researching apartment real estate primarily still come from official information sources such as print newspapers, electronic newspapers, etc., and forums. The higher the real estate value, the more dominant traditional news sources become.
For the apartment real estate segment under 4.5 billion VND, Kompa recorded more than 50% of discussions on Facebook and Forums.

Facebook community groups recorded lively discussions about real estate brands. The 2–4.5 billion VND apartment segment received many consultation requests from customers. Mid-range 2-bedroom apartments were the most sought-after product.(Link).
Conversely, Forums recorded discussion threads on the topic of "Should I buy an apartment or landed property?"(Link)and "Effective financial allocation for investing in or owning apartment real estate."(Link).

Customer concerns regarding apartment real estate

The stage of beginning to research apartments

• "Price" is the decisive factor
  Q1/2021 experienced a "real estate bubble," driving market prices up. 32% of customers stated that searching for an apartment is primarily based on whether their financial capacity can meet the price level.

• "Payment policy" is the top priority
  Customers in the stage of beginning to research apartment real estate prioritize payment policies over other factors: "Even if an apartment has a poor design and few amenities, if the payment policy is quite okay, it is still worth considering."

• "Apartment Location" significantly affects the buying decision
  23% of discussions suggested that "Location" has a major impact on the decision to buy an apartment. Many customers commented that even if an apartment meets diverse needs, they do not proceed with the purchase due to inconvenient transportation locations.
  At this stage, users are primarily concerned with "Price" and "Payment Policies." Focusing on these contents helps the Brand drive interest and research from potential buyers.

Brand Consideration Stage

• The reputation of the "Developer" is the decisive foundation
  Over 20,000 discussions evaluate the "Developer" as a decisive factor in the long term. Many customers believe that a reputable "Developer" possesses the experience and financial capacity—a solid foundation for a chain of factors: from infrastructure quality and management processes to transparency in legal procedures.

• "Security" is a key focus
  Beyond just managing entry and exit, customers are also concerned with "Safety" factors such as: fire prevention and fighting systems, surveillance cameras, elevator quality, balcony design, and emergency exit plans in case of urgent situations.

• Apartment location is a key factor
  The "Location" factor directly affects daily life and future Real Estate value. Apartments with convenient "Locations," such as being near central areas or having public works nearby, receive significant interest and consultation requests from customers.

• The "Green Living" trend is rising
  Brands focusing on internal amenities and living spaces receive positive discussion from customers, especially regarding the green living trend.
  The Ecopark project is highly rated for its "green living" space design. Meanwhile, Masterise Homes implemented "The Master Of Living Show" program with a message of enhancing the living space experience. Episode 2, titled "Bringing Nature into the Home," attracted over 1.1 million views.(Link)

Analysis of the Real Estate market in the apartment & condominium segment

Strengths

• Convenient for families with young children
  Customers believe that the community in apartment complexes often interacts and socializes, creating an environment for young children to interact and develop social skills.(Link). Having observers also helps minimize accidents for young children. Apartment complexes often integrate amenities such as parks and supermarkets, which are convenient for families with young children. Airy atmosphere and fewer insects are also factors of interest.

• Security is continuously monitored
  Most discussions suggest that choosing an apartment/condominium ensures security issues, such as having private parking basements and not having to worry about theft, thanks to the Building Management and 24/24 surveillance camera systems (Link, Link).

• Diverse integrated amenities
  Amenities are among the most loved factors by customers. Discussions mention that integrating diverse facilities such as gyms, parks, supermarkets, etc., helps save time and facilitates daily activities.

Weaknesses

• Value decreases over time
  The value of apartment/condominium Real Estate versus Townhouses is often weighed by many customers. Over time, apartments/condominiums will degrade, leading to a decrease in value. Additionally, apartment/condominium Real Estate has a slow price appreciation rate or may lose value, failing to provide long-term investment benefits (link).

• Many service fees / accompanying amenities
  Diverse integrated amenities lead to an increase in monthly expenses. Customers hesitate about actual benefits versus service quality: "Developers holding onto maintenance fees," "Unreasonable fee collection," or "Poor management professionalism."

• Lack of privacy and comfort
  Many believe that apartment residents are too crowded, feeling uncomfortable due to constant surveillance (link). Additionally, 20% of comments feel restricted because "any desire to renovate or repair the space requires permission from the building management."

Driving factors

• Promotional activities and installment support
  Vinhomes Smart City and Masterise Homes respectively launched "financial" support programs, focusing on the psychology of initial capital hesitation when customers need to buy a home. The "0 VND capital" and "House exchange house" messages from these two Brands attracted a large volume of consideration discussions to learn more and change perceptions about owning an apartment/condominium.

• Demand for green living and improved living standards
  As living standards are raised, customers prefer owning apartments with airy spaces and views of the outside scenery (link). Beautiful interior design creates a positive impression and stimulates the user's desire to own the apartment.
  The trend of green living and closeness to nature is also evaluated as a way to elevate living standards. The Ecopark project's focus on natural space design has been remarked as "the most livable city in Vietnam."

Barriers

• Rising house prices create pressure for buyers
  The topic "2 billion VND apartments are about to go extinct" in a forum recorded over 1,000 discussions. Many opinions suggest that apartment/condominium Real Estate is a "depreciating asset" – "an apartment is like a long-term rental house, but with limited ownership." Furthermore, buyers also express concern that to get lower prices, they must accept remote and inconvenient locations.

• Ambiguous legal documents, especially pink books and red books
  Non-transparent ownership documents are the biggest barrier for the majority of homebuyers. Many comments criticize the "delay or even never being issued a pink book" by a series of previous apartment Investors.
  Customers emphasize "only buying when the book is available," proving that uncertain ownership causes anxiety for those intending to research and buy apartments.

Summary

Regarding Communication Channels

Official news sources remain the dominant communication channel in the apartment/condominium Real Estate sector. The higher the apartment value, the more official information channels are trusted.
In the apartment segment under 4.5 billion VND, buyers tend to research and refer to information in Facebook community groups and Forums. Topics analyzing the basis for choosing an apartment receive high user discussion. Brands can leverage posts in these channels to develop seeding discussions that suit the needs of each customer segment.

Regarding Marketing Activities

Communication activities focusing on "price" and "payment policies" help the Brand hit the psychological pain point of financial hesitation and attract interest from a diverse range of customers.
Vinhomes Smart City's 'zero capital' homeownership program has successfully helped the community become more open to apartment/condominium real estate products, while simultaneously expanding the potential customer base to include younger demographics.
For high-end real estate brands, investing in lifestyle-oriented programs helps 'shape the market' and effectively supports apartment sales.
Masterise Homes implemented 'The Master Of Living Show' to introduce premium living experiences. Concurrently, the brand launched the 'Nhà đổi nhà' campaign, encouraging buyers to upgrade their lifestyle at a lower investment cost. The Ecopark project's Fanpage also focuses on creating content that celebrates 'natural living spaces'.

Regarding customer interests

Depending on the research stage, customers have different interests. For customers in the stage of researching 'price' and 'payment policies', these are the two top concerns. Messages that focus directly on these topics, such as those from Vinhomes Smart City, will attract customers to dive deeper.
Conversely, for experienced customers, 'Developer reputation' is a prerequisite. Brands need to ramp up activities to strengthen their name and build trust with this buyer segment.
The 'location' of an apartment is among the top concerns when customers consider a purchase decision, regardless of the stage. Building values such as 'stylish interior' and 'closeness to nature' helps brands increase real estate value for customer groups looking to improve and enhance their quality of living.
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This article was produced by Kompa – a provider of technology solutions based on Big Data and AI platforms, designed to help businesses thrive in the Digital Age.