Hong Kong developer Swire Properties said on Tuesday it will develop a luxury residential project in Jakarta, in its first foray into Indonesia, Southeast Asia’s largest economy. It has formed a joint-venture company, PT Jantra Swarna Dipta (JSD), with listed Indonesian developer Jakarta Setiabudi Internasional Group, for the development of the project in Dharmawangsa in South Jakarta. “We are always looking for opportunities to expand our business in Southeast Asia, and we are excited to partner with Jakarta Setiabudi Internasional Group to bring our unique brand of upscale high-rises to Indonesia’s capital city and contribute to the local property market,” said Mabelle Ma, director of development and valuations at Swire. “This is our first development in the Indonesia market. Dharmawangsa is an upscale neighbourhood in South Jakarta, and this is an exciting opportunity to develop one of the city’s most prestigious addresses,” Ma said. Where should new capital be, Jokowi asks Indonesians on social media Chandra Asali, the joint venture’s president, said: “It is a privilege to develop one of Jakarta’s most prestigious addresses, and by bringing together Jakarta Setiabudi Internasional Group and Swire Properties, we are confident that this partnership will raise the bar for the property scene in Indonesia.” Swire did not provide details of the high-rise apartment building other than it will be situated within a three hectare urban parkland. It also did not disclose how much it was investing in the project. Abandon Jakarta: Indonesia again mulls plan for new capital South Jakarta residential listings on Knight Frank’s website show houses in the area have an asking price of between US$134,125 and US$8.8 million. According to property consultancy Cushman & Wakefield, quarterly average rents in Jakarta rose 0.8 per cent to US$17.2 per square metre a month in the first three months of 2019. The prices of existing and proposed condominiums remained relatively stable, with average prices in the central business district at US$3,602 per square metre, rising by 0.2 per cent, and US$3,178 per square metre for primary residential areas. Jakarta’s first subway line to revitalise property market Similar properties in Hong Kong’s Mid-Levels residential district currently cost US$32,798 per square metre. Currently, luxury condominium units in Jakarta total 4,131, accounting for just 1.6 per cent of the total supply in Greater Jakarta. “Due to limited units, the sales rate of existing [luxury] segment condos is about 96 per cent at the moment,” said Arief Rahardjo, director of strategic consulting at Cushman & Wakefield Indonesia. “Luxury segment condominiums are a very niche market and are mostly end-user units. The buyers prefer exclusivity, with a limited number of units in each project, located in exclusive upper-class residential areas, such as Jakarta’s central business district and prime residential areas. “Some were built in a complex with five-star or luxury hotels, with large green areas within the complex and excellent landscape design, unique and high-quality materials and availability of complete high-class facilities,” Rahardjo said. The Dharmawangsa project is Swire’s second in Southeast Asia after Eden, an ultra luxury residential project in Singapore. Besides luxury homes in Hong Kong, Swire also has a portfolio of commercial and hotel properties in Hong Kong, mainland China and the United States.