MOST 'EXPENSIVE HOME IN THE WORLD' IS IN THE UKMOST 'EXPENSIVE HOME IN THE WORLD' IS IN THE UKBeating New York, Hong Kong and Japan

Dorset's exclusive resort of Sandbanks has become the most expensive place in the world to buy property per square foot, after a waterside bungalow sold for a record £13.5m.

The luxurious four-bed home had been in the same family for 117 years after a Victorian botanist bought a piece of land on the peninsula in Poole Harbour for about £1,000.

Known as North Haven Point, the chalet bungalow was extended in the 1950s and has a floor space of just 2,909sq ft. Its £13.5m price tag equates to £4,640 per square foot.

The home's per-square-foot cost beats the value of property in Monaco, Hong Kong and New York.

The jaw-dropping Sandbanks property occupies a 1.4 acre corner plot, by far the biggest piece of real estate on the Millionaires' Row.

New owner Tom Glanfield plans to demolish the bungalow and replace it with a luxurious eco home that will cost at least £5m to build.

Due to its corner location, the property will have a stunning 270 degree view of Poole Harbour, the world's second biggest natural harbour behind Sydney.

MOST 'EXPENSIVE HOME IN THE WORLD' IS IN THE UKMOST 'EXPENSIVE HOME IN THE WORLD' IS IN THE UKBeating New York, Hong Kong and Japan