A P&O Cruises Australia vessel will soon take on a new life as a stationary dwelling anchored off Panama.

Ocean Builders, a Panama-based builder of floating homes, has bought the 1,546-berth Pacific Dawn (built 1990) from the Carnival Corp-owned brand and plans to offer sustainable living on the sea.

"We love Panama and have made it our new home," chief operating officer Chad Elwartowski told TradeWinds.