A WEALTHY homeowner has just paid £3.5m for this empty plot of land – because it overlooks Sandbanks.

The 30ft wide strip of overgrown grass and uneven concrete runs down to the edge of Poole Harbour.

From the site in Dorset Lake Avenue, Lilliput, there are views of the 'Millionaire's Row' where homes sell for up to £10m.

It also has a slipway for launching boats straight onto the water.

The new owner who paid the full asking price for the plot will have to obtain planning permission before they can build their own luxury pad on it.

It is thought the build cost would be in excess of £1m.

The mind-boggling figures are par for the course for Sandbanks, which is the fourth most expensive place in the world to buy property.

And although this half-an-acre plot is about a mile from the exclusive peninsula, seafront properties around the harbour remain in huge demand.

Tom Doyle, of Sandbanks estate agents Lloyds Property Group, which sold the plot, said: "To anybody outside the area it might seem madness to pay £3.5m for a vacant plot of land.

"But people pay a premium for water frontage property and houses on that road sell for between £6-£7m.

"It does attract high net-worth individuals.

"It is a very vibrant market at the moment. Why is that? A lot of people are thinking seriously about not having a second home abroad and focussing on securing something exciting in the UK.

"Working and living away from London is also a factor. The mindset seems to be to go into the city one day a week and then work from home for the rest of it."

It is thought the ongoing uncertainty of Brexit and coronavirus is leading to people looking to buy holiday homes here than abroad.

London-based buyers are also now said to be casting their net further from the capital as the COVID-19 pandemic has shown they can work from home.

Mr Doyle added: "The new owner is going to build a house there himself to live in. He will not be putting it back up for sale when it is complete. He already lives locally but he wants a house on the water which is what this will be."

On its website, Lloyds Property Group states that it is 'prime waterfront location' on the 'gateway to Sandbanks'.