THE crazy world of the Sandbanks property market can be highlighted with the demolition of this £4m seaside mansion to make way for an even more luxurious development.

The substantial home built in the 1980s overlooks the millionaires’ enclave in Poole.

Despite boasting five bedrooms, four bathrooms, four reception rooms, a sun terrace, a full sized swimming pool, sauna and steam room, bulldozers have been called in to knock it down.

The new owners have secured planning permission to build three sleek, super-modern, opulent homes on the soon-to-be vacant plot.

Once built the hat-trick of houses will go on the market for a combined £12m.

Sandbanks is ranked as the fourth most expensive place in the world to buy real estate after London, New York and Tokyo, and plots of land with building potential are worth far more than the homes already on them.

The 3.5 acre plot borders a nature reserve and will be divided up to make way for the three contemporary homes which will be valued at £4.8m, £4m and £3.25m.

About 50 established trees will be felled for the development, although 40 saplings will be planted to compensate.

Adrian Dunford, of Tailor Made Estate Agents, said: “The large detached property that is there now has got no architectural merit.

“It isn’t a particularly pretty property at all and the way its sits on the plot isn’t ideal.

“There has been no appetite among local conservation groups such as the Sandbanks Association for it to be given listed status.”

Mr Dunford said people in Sandbanks aren’t looking for mansions more suited to the country.

He said: “It is almost a four acre site and there is no reason to have just one house on it.

“Couples in this area don’t require a house of 30,000 square foot where they will be in separate parts of it most of the time and only see each other at dinner.

“One of the main attractions of this area is the outdoor lifestyle it offers and couples prefer to do that together.

“We expect these properties to attract couples whose children have grown up and left home.”

Nick Blakemore, a director of developers Excellare, said: “The house that is there is not how it was in its heyday and has become quite run down.

“It is not the style of house that people are looking for now.”

Sandbanks is home to former Premier League football manager Harry Redknapp, West Bromwich Albion boss Tony Pulis, SKY TV soccer pundit Graeme Souness and Maxim Demin, the Russian millionaire owner of AFC Bournemouth.