South Molle Island, Whitsundays, QLD, is still on the market.
Pressure is building on the Chinese owner of an abandoned resort island in the Whitsundays, with the local mayor and relevant state minister discussing its continued ‘inactivity’ since 2017.
It comes after a Queensland government crackdown on abandoned islands since the pandemic, most of which operate under lease agreements that specify tourist 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 derelict since Cyclone Debbie struck in 2017 – severely damaging the former Adventure Island Whitsundays resort which comprised 188 rooms and facilities including multiple pools and a golf course.
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The resort on South Molle Island in the Whitsundays is in a dilapidated state. Picture: Allards Across Oz
South Molle Island, Whitsundays has leashold tenure, and comes under the Whitsunday Shire – zoned tourism & national park. Source: HTL Property.
Whitsunday Regional Council Mayor Ry Collins said China Capital Investment Group owns the devastated South Molle Island and “had advised the state government it was not in a position to redevelop South Molle Island at this point in time”.
Mr Collins said the island was being left behind with several neighbours in the Whitsundays striking major development and ownership deals worth millions – if not billions in one case.
He confirmed raising South Molle Island’s future with Natural Resources Minister Dale Last, who is also the local member for Burdekin.
“South Molle Island is really almost like a jewel in the crown of the Whitsunday Islands and the council would be very, very keen to see that project be reactivated and a new resort developed there,” he said.
“We obviously see massive economic opportunity associated with Queensland’s islands generally, and are very keen to support future projects.”
“We definitely want to see some activity,” he said.
The Whitsundays region attracts an estimated 897,000 visitors a year – up 5.9 per cent on 2019 – spending $1.7 billion, an increase of 139 per cent on pre-pandemic levels.
Visitors to the island took these shots. Picture: Allards Across Oz
Queensland Natural Resources Minister Dale Last. Picture, John Gass
China Capital Investment Group bought South Molle Island in 2016 for $25 million and also owns the operational Daydream Island Resort in the Whitsundays. It first listed it for sale in 2023, and currently has it listed via private treaty through HTL Property.
It’s believed a couple of potential buyers are still actively engaged in discussions, but no deal has been finalised.
Several formerly derelict islands are on the move, according to Mr Collins.
Lindeman Island has construction underway on a $40-50 million first phase as part of a $583 million master plan, with the resort set to open in 2026.
The council has also granted Hook Island development approval for around 40 eco cabins.
Hamilton Island – not abandoned but demonstrating the region’s appeal – sold to US private equity giant Blackstone in a $1.2 billion deal announced in December 2025, with completion expected this year pending regulatory clearances.
Lindeman and Hook were in similar states of abandonment as South Molle Island when the Queensland government began a crackdown on owners who abandon their islands while holding development leases.
Whitsunday Regional Council Mayor Ry Collins
The upgraded jetty was worth $10m. Picture: Allards Across Oz
An information memorandum sent to prospective buyers by HTL Property details the island’s development potential, with initial town planning advice indicating capacity for over 1,300 rooms along with supporting amenities, subject to council approval.
The property has perpetual tenure on the beach and island parcels, a completed $10 million jetty reconstruction, a new freshwater dam to reduce desalination costs, and removal of old structures creating what sales agents describe as a “construction-ready site”.
The island boasts what agents describe as an “impressive 600-metre stretch of rare, protected north-facing white sand beaches” and flexibility to develop anything from low-density luxury villas to a large-scale resort.
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