Elizabeth Island given $6.95 million asking price

Elizabeth Island, the island off Western Port Bay in Victoria, has been given an official $6.95 million asking price.

The 26 hectare private island has been on and off the market since 2014, with prices ranging from $5 million to $10 million.

Its listing last year through RT Edgar suggested a sale would occur with a $4 million bid. Former IT and management consultant and psychologist Anne Tillig has owned the island since 1996.

Century21 Home Port agent Phil Bock is now marketing the property as having the potential to "offer the lot to one million tourists already passing by".

Near French Island off the coast of the Mornington Peninsula, the private owned island has little more than a three bedroom fully off-grid home and a jetty.

It is now zoned for tourism, which means up to 20 villas can be built, subject to planning approval.