A boat shed in Victoria could soon be one of Australia’s most expensive of all time, with an expected sale price of $700,000.

No.1 Boat Shed on Portsea Front Beach is up for sale after it was purchased 25 years ago for $25,000, and is heading for a new record price for the resort town.

The site is a World War II bunker and has since been transformed into a boat shed perched on the water’s edge overlooking Weeroona Bay. It measures just 13 square metres in size but has a fenced deck which is twice the size of decks of an average beach box.

Portsea is regarded as a summer playground for Melbourne’s richest families and ATO figures found it was the nation’s most affluent suburb, despite being home to just 500 people. Trucking magnate Lindsay Fox, Kate Baillieu, Eddie McGuire and Ron Walker are among its summer inhabitants and a boat shed is considered a de rigueur status symbol.

While No. 1 is smaller than a traditional boat shed, which averages around 30 square metres, it’s still expected to fetch the price of a suburban home, despite having no power or running water.

The $700,000 price tag of the tiny property would also surpass Boat shed 23 on the Shelley Beach foreshore which went under the hammer last year for $615,000 — setting a new record for beach boxes in Portsea.

Sotheby’s International Realty listing agent Rob Curtain says that much of the popularity and interest behind beach boxes has been “without doubt the convenience of being able to store beach & water sport equipment (paddle boards, skis, table and chairs)” and “especially for those with children as parking close by is very difficult.”

Curtain says there was strong interest among local buyers in Victoria and that the beach box is “definitely the most expensive in Australia” as a license to occupy and not freehold title.

Last year, Boat Shed S28 in Shelley Beach sold for $553,000 at an auction on Australia Day. Just behind this was Boat shed 28 in Mornington Peninsula who changed hands at the price of $239,000 in October last year.

More recently, two beach boxes on the iconic Brighton Beach strip in Melbourne went under the hammer for $285,000 and $280,000 breaking the previous record of $260,000 set in 2011 for the beach side suburb.

In the meantime, here’s a look at what you could get for $700,000.

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