Most of us dream of living by the sea at some point in our lives, because for most of us, it symbolises peace and tranquillity. But not all of us are lucky enough to do so, as that dream comes at a premium. Properties with sea views generally fetch around 30% more that their counterparts inland, but it could be as much as 43% of a difference. This is true of Sandbanks, a small seaside town in Dorset, often dubbed as the UK’s Palm Beach. It consistently ranks as one of the most expensive places to live in the UK, and arguably is the most expensive coastal real estate in the world.
So why is Sandbanks so expensive?
The peninsula shape of Sandbanks means there's a limited number of properties, and supply and demand dictate prices. Demand for seaside properties also increased by 115% during the pandemic, as more and more people worked from home and prioritised health and wellbeing. The Peninsula is considered part of Poole harbour, the second largest natural harbour in the world after Sydney Harbour, and the area boasts an abundance of things to do, quality restaurants, low crime rates and top schools. The worldwide scouting movement was founded on nearby Brownsea Island in 1907, whilst the National trust protected area of Studland, accessible by ferry, features some of the country’s best beaches. Liam Gallagher, Karl Pilkington and Harry Redknapp are all rumoured to have had a property here.
But it wasn’t always so popular. Originally made up of deserted sand dunes, it wasn’t until 1880 that a single hotel was built. Later, more land was sold off for development, and a small number of homes were built, but a great deal of the land remained uninhabited, largely because there was no road connecting Sandbanks with the main land. A road was finally built just after World War I, suddenly making the area more accessible. Even during the 1980s however, property here was still relatively affordable, with flats selling for less than £100,000. It wasn’t until 1990 that some clever marketing from local estate agents helped Sandbanks transform into a playground for millionaires.
The average price of a two-bedroom apartment in 1998 was around £689 per square foot, making Sandbanks the fourth most expensive place in the world to buy residential property. Since then, property prices have skyrocketed with house prices in the area reaching £1,250 per square foot. The peninsula is now said to be worth a combined £933 million. In 2023, Sandbanks claimed to have sold the most expensive property in the world. The bungalow, known as North Haven Point, was sold for £13.5 million, equivalent to a staggering £4,640 per square foot.
But is Sandbanks worth it when there are so many other stunning coastal destinations in the world to choose from? Take Newport Beach for example in California, which many claim is one of the best places to live in the world. Unsurprising really given its beachfront lifestyle, abundance of water activities and outdoor recreation, warm climate, excellent amenities, and prestigious schools. It also features a natural harbour, with Balboa Island nestled in its middle, which unlike the protected Brownsea Island, is crammed with the most amazing back to back properties, many of which have passed from generation to generation. It’s proximity to Orange, San Diego and LA also means it has a huge local population within an hour’s reach, which has also resulted in a very swanky retail development at its heart, which includes a Nobu.
Originally a settlement for native Americans, it developed into a working port in the 1800s, Newport Beach’s early industries included salt mining, canning and fishing. Later, when the commercial shipping industry declined, it developed into a tourist and recreational boating community. Much like Sandbanks, the limited housing inventory in Newport Beach and its stunning location contribute to the area’s high house prices.
So how does living in Sandbanks really compare to Newport Beach?
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| Sandbanks | Newport Beach |
| Average House Prices | House prices here average just over £2.1 million, with detached house reaching an average of just over £3 million. | Properties in Newport Beach have an average price tag of $3.3 million (approximately £.5 million). |
| Weather | In Sandbanks, the average annual temperature is 11.4°C (52.5°F), with rainfall of 798mm per year. Summer months can of course see temperatures in the mid-twenties, but be prepared for cold winters with near freezing temperatures at times. | Newport Beach has more than 270 sunny days a year. The average temperature is 16.9°C (62.4°F) and annual rainfall is just 309 mm. Even in the coldest months, temperatures rarely drop below 12°C (53.6°F). |
| Restaurants | Sandbanks has many good restaurants, and is particularly known for its selection of seafood restaurants including:
| Whilst there are no Michelin-starred restaurants in Newport Beach itself, there are several in Orange County. Restaurants in Newport Beach cater to a variety of tastes and include:
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| Recreation & Leisure | The world-famous Blue Flag beach at Sandbanks offers over 7 miles of white sandy beach and clear water. The water on the harbourside is very shallow and perfect for practising water sport activities such as paddle boarding, kayaking, windsurfing and dinghy sailing. There’s also a dedicated spot for kitesurfing. Sandbanks has several surf schools and a Watersports Academy, one of the largest activity centres on the south coast. There are a number of boat trips available, including a tour of Brownsea Island and a trip along the Jurassic Coast. Or, take a trip to nearby Poole harbour, visit Poole Park with its green spaces, spas and lively bars, or try wine tasting at the English Oak Vineyard.
| Newport Beach boasts many sandy beaches, including beaches on the Balboa Peninsula, Corona del Mar State Beach, and Crystal Cove State Park. Enjoy surfing, kayaking, paddleboarding, body surfing and many other water sports. Hike, jog or cycle the miles of trails surrounding the area, or take a sunset cruise, harbour cruise, whale watching tour, or visit Balboa Island or the Newport Beach Pier. The area also has several world-class golf courses to choose from if you fancy teeing off to coastal views. If you love shopping then Newport Beach boasts a range of options including Fashion Island, an outdoor designer shopping mall, and the Corona del Mar neighbourhood which has several second-hand boutique shops featuring brand name clothing and accessories. |
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| There are several schools in the surrounding areas, rated as outstanding by Ofsted. These include Canford Heath infant School, Glenmoor Academy secondary school for girls, Linwood School which caters to a range of special educational needs and disabilities, Parkstone Grammar School and Manorside Academy. Private schools in the area include Talbot Heath School, Bournemouth Collegiate School and Eagle International. | The city has two public high schools, Corona del Mar High School and Newport Harbor High School, both of which rank highly in the US. There are also some private school options such as Pacifica Christian High School, Sage Hall School, and Carden Hall. There are more than 100 colleges within 100 miles of Newport Beach, including Chapman University, Coastline Community College, and University of California Irvine. |
| Transport Links | Regular bus services run from Poole and Bournemouth to Sandbanks. The area has several nearby trains stations, including Parkstone, Poole, and Branksome (all within 3 miles). There are direct train services from London Waterloo and other major UK cities to Poole Railway Station. You can reach London from Poole in around 2.5 hours By car the Sandbanks Ferry runs to Studland, offering access to the south. To the north is Bournemouth, with easy onwards access to the M27 and M3 motorways. Heathrow airport is around a 2-hour drive. | Newport Beach is very well connected, with numerous transport options. The John Wayne Airport is around a 10-minute drive, providing air travel across the US and beyond. The area is connected by major highways such as the Pacific Coast Highway and Interstate 405 offer access across the county. The local authority operates bus routes throughout Newport Beach and the surrounding areas. The city has also invested in eco-friendly bike lanes and pedestrian-friendly pathways, for a more sustainable option. |
As you can see, both places clearly offer an excellent lifestyle and an abundance of things to see and do, so it’s hard to decide between the two. What we can say for certain, however, is that when it comes to choosing a prime seaside location, you are spoilt for choice. Perhaps the best solution is to have homes in both locations!
To find out more about financing for million plus properties in the UK, US and beyond, please contact Islay Robinson, at [email protected]
The views and opinions expressed in this piece are those of the author and do not constitute advise or a recommendation. They do not necessarily reflect the official policy or position of Enness and are not intended to indicate any market or industry viewpoints, or those of other industry professionals
Islay Robinson, a founder of Enness, is widely regarded as one of the UK's leading mortgage brokers. He has been instrumental in delivering some of the most complex and high value mortgages in the UK.
