Britain's golden riviera

Geoffrey Boycott recently bought a Sandbanks home

A tiny neighbourhood on the south coast has been named the fourth most expensive place to live in the world.

House prices on the two-mile Sandbanks peninsula overlooking Poole harbour in Dorset are higher than in Singapore, New York or Paris.

The average price of a two-bedroom flat in Sandbanks means only Tokyo, Hong Kong and central London have more expensive districts to live in.

So big is the demand to own a part of the peninsula that prices have soared

Estate agent Tom Doyle

Sandbanks has become popular among celebrities in recent years, including pop star Louise and her footballer husband Jamie Redknapp, Tottenham Hotspur's Darren Anderton and former England cricketer Geoffrey Boycott. Veteran singer Sir Max Bygraves also lives in the area.

New York estate agent Corcoran reported the figures in its latest survey of property prices.

The most expensive place in the world to live is Shoto in Tokyo's Shibuya district, at £895 per square foot.

Sandbanks has a coveted harbourside location

Next comes Hong Kong's Barker Road, where property goes for £859 per square foot, followed by Eaton Square in London's Belgravia at £775.

Sandbanks properties cost £689 per square foot - more expensive than New York's Fifth Avenue at £627.

Tom Doyle, managing director of Sandbanks-based Lloyds Executive and Waterside Properties, said: "It is the most expensive place in the world for an area solely dedicated to leisure.

"But so big is the demand to own a part of the peninsula that prices have soared in the last five years.

"Many of the properties are just used a few months of the year, but owners pay for the views, beaches and moorings."