The record price for property for Sandbanks has been shattered following the sale of a luxury apartment that hasn't yet been built.
The flat that will have stunning views of Poole Harbour has sold for more than £2.16m.
It has 1,219sq ft of living space, meaning the sale price equates to £1,776 per square foot - a record for the sought-after location.
The flat will be one of eight in a brand new apartment block that won't be finished until spring 2023. So far, seven of the eight properties have sold off-plan.
Experts say the reason they have been snapped up so quickly is down to a huge demand for homes from post-covid Brits relocating to the seaside and a drastic shortage of waterfront property on the market in the area.
Robert Dunford, of Sandbanks estate agents Tailor Made, said: "The sales of seven apartments have been agreed, at asking price or very close to. I can confirm that the record price has been achieved, with one of the sales going through at £1,776 per square foot.
"Property demand remains high for the area, in particular for waterfront and beachfront locations.
"A lack of supply and high levels of applicants are enabling sellers to achieve very strong money at the moment."
The new flats are being built on the site of a 22-year-old seaside mansion that was demolished to make way for the development.
Canny property developer Ashley Faull spent £6m on buying the luxury house, that had an indoor swimming pool, but is now set to recoup £19m from the sale of the flats, making a £13m profit.
Mr Faull, a former ITV executive, said the majority of the buyers are wealthy people living in London or Home Counties looking for a second home or planning their retirement.
He said: "I think the reason for why they have sold so quickly is due to a mix of their stunning design, the location and the high levels of demand.
"I think part of the demand is the hangover from covid and people reassessing their lives and wanting to be by the sea.
"Our buyers are a mix of people who want a second home and those who will make them their first home in a few years time after they retire.
"There is a shortage of new waterfront property on the market at the moment. Nobody is building.
"I think developers are put off by the rising interest rates. If you have a two to three year project, it is very difficult to forecast what the rates will be in that time.
"The cost of building materials has gone up significantly as well. Yes developers can add that to the asking prices but can they be sure people will pay?"
The last apartment still on the market is at ground floor level and is valued at £3m.
The eight flats that will each have three bedrooms and views of Poole Harbour from the main living space and principal bedroom.
The apartment building will have a communal gym, sauna, outdoor hot tub, games room, summer house, boat store and paddle boards and kayaks for residents.
The most amount paid for a house on Sandbanks stands at £10m for Harry Redknapp's former Tudor-style mansion.
But ever since Sandbanks was identified as the fourth most expensive place in the world to buy residential property based on the average price per square foot, local estate agents have also used that as a barometer for prices.
In 2000 Sandbanks ranked only behind Tokyo, Hong Kong and London for the price of real estate with an average of £689 per square foot at the time.
The £1,776 per square foot price now puts Sandbanks behind Monaco, Hong Kong, New York, Geneva, Tokyo and Shanghai.
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