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: