South Molle Island, Whitsundays, QLD, still on the market.
Pressure is mounting on the Chinese owner of an abandoned holiday island in the Whitsundays, with the local mayor and relevant minister of state discussing its ongoing ‘inactivity’ since 2017.
It comes after the Queensland government cracked down on abandoned islands since the outbreak began, most of which operate under leases that specify tourist areas and transport facilities must be maintained.
The Queensland government seized Double Island from Hong Kong developer Benny Wu for resale in June 2023, while South Molle Island has been idle since Cyclone Debbie hit in 2017 – severely damaging the 188-room Adventure Island Whitsundays resort with facilities including multiple pools and a golf course.
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The resort on South Molle Island in the Whitsundays is in a bad state. Photo: Allards Across Oz
South Molle Island, the Whitsundays has a lease, and falls under the Whitsunday Shire – hated tourism and national park. Source: HTL Property.
Whitsunday District Council Mayor Ry Collins said China Capital Investment Group owns the damaged South Molle Island and has “informed the state government that they cannot develop South Molle Island at this time”.
Mr Collins said the island had been left with several neighbors in the Whitsundays hammering out major developments and ownership deals worth millions – if not billions in one case.
He confirmed raising the future of South Molle Island with Environment Minister Dale Last, who is also the local member for Burdekin.
“South Molle Island is almost like a jewel in the Whitsunday Islands and the council would very much like to see that project revived and a new resort built there,” he said.
“We clearly see the huge economic opportunities associated with the Queensland islands, and we are very keen to support future projects.”
“We definitely want to see some work,” he said.
The Whitsunday region attracts an estimated 897,000 visitors a year – up 5.9 per cent on 2019 – spending $1.7 billion, a 139 per cent increase on pre-pandemic levels.
Visitors to the island took these photos. Photo: Allards Across Oz
Queensland Environment Minister Dale Last. Photo, John Gass
China Capital Investment Group bought South Molle Island in 2016 for $25 million and owns the Daydream Island Resort in the Whitsundays. It was first listed for sale in 2023, and is currently listed for a private deal with HTL Property.
It is believed that several potential buyers are still involved in negotiations, but no deal has been finalized.
Several previously derelict islands are on the way, according to Mr Collins.
Lindeman Island is undergoing construction on the $40-50 million first phase as part of a $583 million master plan, the resort will open in 2026.
The council also gave approval for the development of Hook Island for about 40 eco cabins.
Hamilton Island – not abandoned but reflecting the region’s appeal – has been sold to American company Blackstone in a $1.2 billion deal announced in December 2025, and is expected to be completed this year pending regulatory approval.
Lindeman and Hook were in the same island abandonment region as South Molle Island when the Queensland government began cracking down on owners abandoning their islands while holding leases.
Whitsunday District Council Mayor Ry Collins
The upgraded jet cost $10m. Photo: Allards Across Oz
An information memorandum sent to prospective buyers by HTL Property outlines the development potential of the island, with preliminary town planning advice showing a capacity of more than 1,300 rooms and supporting facilities, subject to council approval.
The property has permanent work on the beach and island parcels, a completed $10 million jetty reconstruction, a new freshwater dam to reduce desalination costs, and the removal of old buildings creating what the sales agents describe as a “build-ready property”.
The island boasts what the agents describe as “a stunning 600m of rare, sheltered north-facing white sand” and the flexibility to develop anything from low-rise luxury villas to a large resort.
