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.

"We hope to help bring advanced jobs and tourism to the Panama economy, especially after the difficult summer we have all experienced due to the pandemic.