Flats in Battersea Power Station will get cheaper thanks to the collapse of Malaysia's currency

The re development of Battersea Power Station's and it's chimneys continues on February 18, 2015 in London, England. As part of the extensive redevelopment of Battersea Power Station, the four iconic chimneys will be entirely rebuilt over the course of the next two years. The regeneration of the 42-acre Battersea Power Station site will see the construction of over 1,300 homes, a 160 room hotel and 350,000 sq ft. of retail and restaurant space. (Photo by )Dan Kitwood/Getty ImagesLondon has a chronic under supply of housing and new developments like Battersea Power Station cater for the already well-served luxury market.

There’s a problem brewing at the Battersea Power Station development, and it’s all to do with the Malaysia’s currency, the ringgit.

The first of the homes in the development, which include a 516 square foot studio flat priced at £1.4 million ($US2.2 million), will be finished next year.

But you might want to wait before buying.

“A lot of presales were sold to rich Malaysians, but the currency has collapsed since then,” Camilla Dell, managing partner of high-end property consultants Black Brick said at a conference in London on Tuesday.

“I don’t think all of them can really afford to complete so we might be seeing some fire-sales there. That development is definitely one to watch,” said Dell. “We’ve never advised anyone to buy into” the development.

The Malaysian ringgit has fallen more than 20% against the British pound this year, making any property deal signed in principle before the collapse way more expensive to complete on now.

The currency has been hit by the emerging markets slowdown, led by China and the collapse in commodities prices. Here’s the chart:

NOW WATCH: The rich and powerful are going crazy over these luxury SUVs with bathrooms and cable TV

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.