A POOLE property that was bought for £1.5 million has doubled in value - after it was knocked down.
The removal of the bungalow has given way to a small building plot on the water's edge at Sandbanks.
The 'Millionaires' Row' in Poole Harbour is the fourth most expensive place in the world for residential property and 'blank canvas' plots are hugely sought-after.
Crucially, the owners of the sandy site that is about a tenth of an acre, have secured planning permission to build a luxurious five bedroom house.
Now the empty plot on the exclusive peninsula has gone on the market for £3m.
It would cost up to £1m to build the three-storey home from plan, which will have a market value of £5m when complete.
The land is likely to be bought by a developer or someone with the time and money to build their dream home.
Alternatively, the estate agents are marketing the property as a 'turn key' proposition where a buyer can pay £5m and move straight into the house when built.
The site is in a small cul-de-sac called The Horseshoe.
It overlooks Poole Harbour, enjoys direct access to the waters and even has its own private beach. It is just around the corner from soccer boss Harry Redknapp's house.
Estate agents Tailor Made describe the land sale as a 'superb opportunity to build your own bespoke beachside home on the world renowned Sandbanks peninsula.'
Adrian Dunford, of Tailor Made, said Sandbanks is a unique location where 'blank canvas' sites are more attractive and valuable than the house already on them.
He said: "We are in an area where residental properties are very much viewed for their plot value.
"It is about the potential of the plot rather than what is already on it.
"Knocking a house down and getting planning permission for a new one gives the property a much greater value than before, no matter how old or new the house.
"If you have the money, you can build your dream home in one of the best locations that there is.
"The market here is moving at a real pace. We have just sold a property for the equivalent of £1,250 per square foot, which is a record."
Poole Borough Council have approved plans for a brand new house with five en-suite bedrooms, open plan living space, a home cinema and a gymnasium.
Outside there is room for a double garage, a boat store, four mooring spaces and a rear terrace with spectacular harbour views.
The house that was demolished was a three bedroom bungalow that neighbours said was in a 'good state of repair.' It was built in the 1920s.
A council planning officer's report into its demolition stated it was a 'modest detached bungalow' that had an 'inconspicuous appearance'.
The Horseshoe contains nine properties, all of which directly back on to Poole Harbour, and only one of them has been redeveloped into a modern, luxury home.