Vietnam Property: Peter Frieske, Founder of LuxuryPropertyDanang and CVR – Central Vietnam Realty

Peter Frieske

Peter Frieske has a master’s degree from the University of Warsaw in Poland, with a background in Political Science and Marketing. He has also studied in Chicago and Madrid, Spain, where he has picked up Spanish in addition to English, Polish, and Vietnamese.

Peter Frieske and his wife originally travelled to Vietnam with no intentions of building their company, but they saw an opportunity in the housing market and decided to start their new chapter right in Da Nang.

Company Policy

Today, the company is a real estate consultancy company in Da Nang with an expertise in advising on sales strategies, working alongside major developers and international clients. In additional to their brokerage services, they also offer leasing and property management services. The company was originally working in the residential leasing market before foreigners were looking to buy property in Vietnam.

The company’s 5-year target is to consolidate its position as a leader in Central Vietnam real estate. Peter Frieske believes that the local culture often chases a quick gain, but he believes that a good reputation in the long run is much more valuable. Peter Frieske adds that this means that they are not afraid to pass on certain jobs and contracts if they don’t feel comfortable in executing it properly.

Company vision and mission

The goal of the company is to combine western management with local knowledge to innovatively provide top of the line customer service. Their target is to educate clients and provide valuable and timely information to help clients make informed decisions. Luxury Property Danang caters to a wide range of investment goals and needs and will try their best to be as accommodating as possible throughout the entire process.

Company Profile

Peter Frieske and his wife own 100% of their company shares. His wife is heavily involved in the design and creative aspects of the company. He believes that “behind every successful man is a woman” and that without the encouragement and support from his significant other, it would be significantly more difficult.

The company ultimately decided to turn down multiple offers from investors and real estate professionals to buy into the company, and the couple continues to hold full ownership until today.

CVR: Central Vietnam Realty started with just Peter Frieske and one assistant in a living room, and it grew organically to its size today with LuxuryPropertyDanang as brand focused on foreign investors. The rapid growth began after Vietnam’s radical law changes in the real estate sector in 2015. The company opened a new department two and a half years ago to focus on working with individual investors, specializing in Da Nang. For 2018, the company has been hitting their financial target every month and have been more than doubling their revenue each year.

What do you think your company’s competitive advantage is?

A large part of their competitive advantage lies in Mr. Peter Frieske’s unique position as a foreigner living in Vietnam. He is able to look at things with a different and fresh outlook and can be extremely compatible and understanding to foreign buyers.

Peter continues to state that “it is important to not only [notice] Vietnam’s market and economical growth, but to also study it”, noting the recent changes and growth in foreign direct investment in addition to the amount of privatization in the sector.

Who are your company’s target customers?

The company does not discriminate its clientele; they work with both big clients who are out to buy a $50 million resort and also smaller clients who are on the hunt for a simple apartment. They work with mostly foreign individual investors from places such as Hong Kong, Singapore, Korea, Japan, and Mainland China, but also North America and Europe.

There is a rising trend of foreign investors as the government stabilizes the real estate sector. Vietnam’s real estate market is becoming more trustworthy, and people are becoming more interested as they learn more about it.

What is your outlook on Vietnam’s real estate market?

Da Nang has convenient commute to Hong Kong, so many Hong Kong buyers are looking to Vietnam as a cost-effective alternative to Hong Kong’s expensive land. Mr. Peter Frieske believes that Vietnam is still in the developmental stages of providing support to foreigners who want to permanently reside there, and that it is only a matter of time before they begin to offer support programs to expand their real estate market.

Peter says that future changes are hard to pinpoint, but he predicts further liberalization of regulations and notes a need for transparent procedures in order to provide a secure buying experience to satisfy investors.

When asked about any foreseeable crashes in the market, Peter comments on the stable nature of Vietnam’s market due to the majority of cash transactions. He states that the Vietnamese market behaves differently because there are less defaulted loans due to the high ratio of all-cash transactions.

What are some notable trends and projects that are popular right now?

Some notable market trends include an increase in the hospitality segment, and the increased tendency to value quality. Clients are beginning to look into the quality of projects by measuring design and uniqueness, often seeking one-of-a-kind boutique villa resorts. Location is also a valuable aspect in targeting higher end international clients.

Peter Frieske chose Hội An as the latest city that is gaining popularity with buyers. Hội An newest international quality project for example – X2 Hoi An Resort and Residences, offers many villa residences where both locals and foreigners can purchase with land attached. He explains that these villas have good initial value and land plots, which gives investors the perfect mix to generate rental income whilst the residence appreciates in market value.

Do you have any tips for foreign investors looking to invest in Vietnam?

Peter Frieske states that is important to do your homework and to learn as much as you can about the market, the target area, and to get your information from multiple sources. It is important to pay attention to the legal structure and to not primarily rely on the contractual offer of returns. Peter continues to advise investors to “choose wisely whose advice you take” because it can have a significant impact on your investment.

He also advises investors to focus on the higher end of the market because relatively speaking, the higher end of a market in an emerging economy is different from that of a developed economy. Another strategy is that once you realize you are operating in a higher risk environment, to choose projects that are relatively lower risk.

What is your message for aspiring business owners in Vietnam?

Mr. Peter Frieske advises aspiring business owners to persevere because Vietnam in particular, will require a bit of patience. He says that if you “stick to what you’re doing, do it well, and it will soon bear fruit.