One of the most popular islands in the Whitsundays is up for sale, raising hopes that its cyclone-battered resort may be restored to its former glory.
Key points:
- The South Molle island resort has been shut since 2016, but there are hopes it could re-open under a new owner as the island goes up for sale.
- The resort suffered significant damage in Cyclone Debbie in 2017.
- There has been strong interest in island sales lately, with several other islands in the Whitsundays recently being sold.
The South Molle island resort has been closed since 2016, when it was bought by the Shanghai-based China Capital Investment Group (CCIG).
The resort was seriously damaged when Cyclone Debbie hit the island in 2017.
South Molle's jetty was replaced after the cyclone to grant the public access to the island's walking trails.
Now CCIG has decided to sell and the island, which operates on a state government lease, is back on the market.
Whitsunday Conservation Council hopes the island will be revitalised.
"South Molle island has a long history of being a resort, but it is a national park island as well," president Jacquie Shiels said.
"It has been a really great place for people to holiday."
Damaged infrastructure on coastal islands has been the subject of a Queensland parliamentary inquiry, and a report into the economic and regulatory frameworks of island resorts was tabled in March this year.
It found South Molle island was one of six island resorts on the Great Barrier Reef still closed after being damaged by storms.
The report stated that South Molle was among "resorts that have previously enjoyed instant international recognition [but] remain shuttered and abandoned".
How does an island sale work?
South Molle is being sold through real estate firm CBRE, which has recently made several island sales in the Whitsundays.
"We've seen a lot of interest. We've recently sold Lindeman Island, Hook Island, Dunk Island and Long Island in the region," national director of hotels Wayne Bunz said.
He said the sale of islands involved purchasing a leasehold in perpetuity, where the state government is the landlord.
Mr Bunz said there were rigorous conditions attached to the lease, which must be fulfilled by the new lessee.
"The government has some pretty strict obligations in all the islands that are inhabited under resort leases," he said.
"The principle one is that they must be operated as a resort facility and include additional items like public access, and transportation to and from the island.
"The Queensland government rightly has been doing audits on these islands to enforce the owners to meet the commitments of the lease and keep the properties in good fair wear and condition."
Who is buying these islands?
Mr Bunz said there has been considerable domestic interest in the island.
"At this stage, most interest is coming from high-net-worth individual Australians," he said.
Mr Bunz said with the right buyer, the sale could see the resort re-developed and re-opened to the public.
"I suppose if you ask what the perfect situation is, you've got a high-net-worth individual or a company in Australia or non-profit organisation that could afford it and would appreciate that they are only custodians of these islands that are ultimately owned by Queenslanders," he said.
"Obviously, they need to make a financial gain and need to turn a profit and therefore be a great investment into the Queensland economic climate, where they are providing jobs and experiences for not only Queenslanders, but all Australians and international tourists to enjoy."
Ongoing push for policy change
Although the state government tabled a response to the island resort inquiry in June, the Mackay conservation council has said it remained disappointed in the lack of clear guidance following the inquiry.
"We would like to see some state government policy on this as what they require lessees in terms of their ability to affect repairs after a cyclone, the type of buildings they build, and how vulnerable the buildings and infrastructure are to natural disasters," Ms Shiels said.
"Because at the moment, it just seems to be a blank slate.
"There are a lot of resorts sitting there and no-one's taking responsibility for cleaning them up."
A spokesperson for the Department of Resources said the Queensland government was committed to the responsible development of island resorts.
They also said that lease conditions can vary and may include obligations around land use and infrastructure.
China Capital Investment Group was also contacted for comment.