Currency squeeze seen punishing buyers of luxury homes in London

London

INTERNATIONAL investors who 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 per cent as the pound strengthened against the ringgit. Kuala Lumpur- based developer Sime Darby Bhd said that management and their families bought US$12.8 million of the homes costing from £338,000 (S$745,000) to £6 million. The first phase is set for completion next year.