A show apartment in Britannia Basin

The penthouse is part of an art-deco canal-side warehouse conversion.

Trendy loft-style apartments were a key part of Manchester's 1990s renaissance.

Tom Bloxham, chairman of the developer Urban Splash, said: "Buyers are demanding high quality and excellent design - proved by the great success of our sales so far."

Commenting on the Britannia Basin penthouse, Jeremy Leaf, of the Royal Institute of Chartered Surveyors, said: "Prices in London have been much higher but people are looking elsewhere for better value.

"The high price of this penthouse reflects the popularity of Manchester and the city's preparation for the Commonwealth Games.

"Conversions of former mills and industrial buildings are sought after here, as they have been in London's docklands."