Property prices in Sandbanks were crushed by a flat before it was built

It has 1,219 square feet of living space, which means the selling price works out to £1,776 per square foot – a record for the sought-after location.

The apartment will be one of eight in a brand new building that will not be completed until spring 2023. So far, seven of the eight properties have been sold off plan.

CGI plans for finished development. Photo: Ashley Faull/BNPS

Experts say the reason they have been bought up so quickly is due to a huge demand for homes from post-covid Britons moving to the seaside and a drastic shortage of waterfront properties on the market for region.

Robert Dunford, estate agents at Sandbanks Tailor Made, said: ‘Sales of seven apartments have been agreed, at or very close to asking price. I can confirm that the record price has been reached, with one of the sales taking place at £1,776 per square foot.

“Real estate demand remains high for the area, especially for beachfront and beachfront locations.

“A lack of supply and high levels of candidates are allowing sellers to make very large gains at this time.”

The new apartments are built on the site of a 22-year-old beachfront mansion that was demolished to make way for development.

Work continues at the Sandbanks site. Photo: Corin Messer/ BNPS

Property developer Canny Ashley Faull spent £6million to buy the luxury home, which had an indoor swimming pool, but is now expected to recoup £19million from the sale of the flats, making a profit of £13million .

Mr Faull, a former ITV executive, said the majority of buyers are wealthy people living in London or the Home Counties looking for a second home or planning to retire.

He said: “I think the reason they sold out so quickly was due to a mix of their stunning design, location and high levels of demand.

“I think part of the demand is the hangover from covid and people are reassessing their lives and wanting to be by the sea.

“Our buyers are a mix of people who want a second home and people who will make it their first home in a few years after retirement.

“There is a shortage of new waterfront properties on the market right now. No one is building.

Ashley Faull

“I think developers are put off by rising interest rates. If you have a two- to three-year project, it’s very difficult to predict what the rates will be at that time.

“The cost of building materials has also increased significantly. Yes, developers can add that to asking prices, but can they be sure people will pay?”

The last apartment still on the market is on the ground floor and is valued at £3million.

The eight apartments which will each have three bedrooms and views of Poole Harbor from the main living space and master bedroom.

CGI plans show the views that residents will be able to enjoy. Photo: Ashley Faull/BNPS

The building will include a communal gym, sauna, outdoor hot tub, game room, summer house, boat shop, paddle boards and kayaks for residents.

The highest paid for a house in Sandbanks is £10million for Harry Redknapp’s former Tudor-style mansion.

But since Sandbanks has been identified as the fourth most expensive place in the world to buy residential property based on average price per square foot, local estate agents have also used it as a price barometer.

In 2000, Sandbanks ranked only behind Tokyo, Hong Kong and London in house prices averaging £689 per square foot at the time.

The price of £1,776 per square foot now puts Sandbanks behind Monaco, Hong Kong, New York, Geneva, Tokyo and Shanghai.