Skip to content
Subscriber Only
Business
Pursuits

Currency Squeeze Seen Punishing London Luxury Home Buyers

A boat passes the Battersea power station residential and retail development in London, on Aug. 7, 2015. Photographer: Simon Dawson/Bloomberg
Updated on

International investors who have paid millions of dollars in down payments on new luxury homes in London’s biggest residential development are being squeezed between a more expensive pound and slumping real estate values.

Malaysians who bought units under construction in the Battersea Power Station site from May 2013 have seen costs surge as much as 35 percent as the pound strengthened against the ringgit. Kuala Lumpur-based developer Sime Darby Bhd. said management and their families bought $12.8 million of the homes costing from 338,000 pounds ($526,000) to 6 million pounds. The first phase is set for completion next year.