Deserted island left behind as Whitsundays neighbors prosper – realestate.com.au

Pressure is mounting on the Chinese owner of a deserted holiday island in the Whitsundays, with the local mayor and concerned minister of state discussing continued ‘inaction’ since 2017.

It comes after the Queensland government’s crackdown on abandoned islands since the pandemic, most of which operate under lease agreements that specify tourism facilities and transport services must be maintained.

The Queensland government seized Double Island from Hong Kong billionaire Benny Wu for resale in June 2023, while South Molle Island has been abandoned since Cyclone Debbie struck in 2017 – severely damaging the former Adventure Island Whitsundays resort with 188 rooms and facilities including multiple swimming pools and a golf course.

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The resort on South Molle Island in the Whitsundays is in a dilapidated state. Photo: Allards across the street from Oz

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South Molle Island, Whitsundays has a lease and falls within the Whitsunday Shire – zoned tourism and national park. Source: HTML property.

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Whitsunday Regional Council Mayor Ry Collins said China Capital Investment Group owns the blighted South Molle Island and had “informed the state government that it was unable to redevelop South Molle Island at this time”.

Mr Collins said the island lagged behind several neighbors who signed major development and property deals worth millions – if not billions in one case – during the Whitsundays.

He confirmed he would like to discuss the future of South Molle Island with Natural Resources Minister Dale Last, who is also local member for Burdekin.

“South Molle Island is actually almost a jewel in the crown of the Whitsunday Islands and the council would be very keen to see this project reactivated and a new resort developed there,” he said.

“We clearly see huge economic opportunities associated with the Queensland Islands in general, and are keen to support future projects.”

“We definitely want to see some activity,” he said.

The Whitsundays region attracts an estimated 897,000 visitors per year – up 5.9 per cent on 2019 – spending $1.7 billion, up 139 per cent on pre-pandemic levels.

Visitors to the island took these photos. Photo: Allards across the street from Oz

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Queensland Natural Resources Minister Dale Last. Photo, John Gass

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China Capital Investment Group bought South Molle Island in 2016 for $25 million and also owns the operating Daydream Island Resort in the Whitsundays. It was first offered for sale in 2023, and is currently listed via private treaty through HTL Property.

It is believed that a number of potential buyers are still actively involved in discussions, but no deal has been finalized yet.

According to Collins, several previously abandoned islands are on the move.

Construction is currently underway on Lindeman Island on a $40-50 million first phase as part of a $583 million master plan that will see the resort open in 2026.

The council has also approved Hook Island for the development of around 40 eco huts.

Hamilton Island – not abandoned but a testament to the region’s appeal – was sold to US private equity giant Blackstone in a $1.2 billion deal announced in December 2025 and expected to be completed this year pending regulatory approval.

Lindeman and Hook found themselves in a similar state of desolation as South Molle Island when the Queensland government began a crackdown on owners leaving their islands while they held development leases.

Whitsunday Regional Council Mayor Ry Collins

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The improved jetty was worth $10 million. Photo: Allards across the street from Oz

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An information memorandum sent to potential buyers by HTL Property details the island’s development potential, with initial planning advice indicating capacity for more than 1,300 rooms, along with supporting facilities, subject to council approval.

The property includes perpetual title to the beach and island lots, a completed $10 million jetty reconstruction, a new freshwater dam to reduce desalination costs, and the removal of old structures, creating what sales agents describe as a “build-ready site.”

The island has what agents describe as an “impressive 600-metre stretch of rare, protected, north-facing white sand beaches” and the flexibility to develop everything from low-density luxury villas to a large-scale resort.