Pictures of inside the £13.5m bungalow on Sandbanks

With a floor space of 2,909 sq ft, the price works out at £4,640 per sq ft.

Sandbanks has now become the most expensive place to live in the world, beating New York, London, and Hong Kong.

It was the first time in its 117-year history North Haven Point had gone on the market.

The colonial-style chalet bungalow is set on a 1.5 acre corner plot of Millionaire's Row.

It was owned by the Hooker family who are descendants of Sir Joseph Dalton Hooker, one of the most important botanists of the 19th century, a friend of Charles Darwin and the first director of Kew gardens.

Its gardens boast a 270 degree aspect of Poole Harbour, an infinity swimming pool and its own slipway.

Entrepreneur Tom Glanfield, who has bought it, has pledged to spend £7m turning it into a stunning eco-home.

Recruitment boss Tom Glanfield, 44, says he will spend £10m creating a low-rise home that enhances the natural beauty of the 1.4 acre plot, which has uninterrupted views across Poole Harbour.

Instead he plans to demolish the four bed bungalow on the site and build a stand-out carbon neutral eco-home.

As well as knocking down the bungalow and replacing it, the tidal wall that protects the property also needs rebuilding - requiring an estimated total investment of £5m-£10m.

Mr Glanfield said: "As a long-term resident of Poole, I certainly do not want to build anything that detracts from the natural beauty of the area, or that negatively impacts any of my friends and neighbours.

"Unfortunately, the current house is extremely inefficient and does not meet modern building standards.

"As with all seafront properties, years of exposure has taken a huge toll."

Furthermore, the existing property is at increased risk from tidal storm surges.

"My dream is to build a permanent family home that will stand the test of time, using sustainable building methods, locally sourced materials, and calling on local tradesmen to carry out the building work.

"Importantly, any property here needs to be futureproofed against flooding too. Of course, I'll be led by the council's requirements and expertise.

"The most important thing to me is to respect and protect the natural surroundings of the property, including the stunning mature trees."

Mr Glanfield added: "I hope to be sympathetic to the location, building something that blends in rather than stands out, and can perhaps even inspire future house building."