Island daydream: South Molle Island up for sale

South Molle Island, which was destroyed by Cyclone Debbie in 2017, is back on the market after China Capital Investment Group decided to part ways with it without restoring it.

The once popular holiday resort in the heart of the Whitsunday Islands will beb sold by agents CBRE.

China Capital owns Daydream Island Resort and Spa and purchased South Molle in 2019 for $25 million.

It spent $10 million upgrading its jetty and had ambition to restore it as a “world class five-star tourist resort”.

However, the island remains a shambles with collapsed rooms and no infrastructure.

The current asking price is more than $30 million, according to sources.

South Molle is the closest island to the mainland. It encompasses combined development parcels totalling around 28 ha of beachfront and island centre land across perpetual and long-term leasehold lots.

China Capital purchased the island to expand its presence in the Whitsundays. However, it will now be up to another owner to develop.

Consideration could be for anything from boutique villas to glamping sites and sizable resorts.

It was only a couple of years ago that China Capital looked to offload Daydream Island for $200 million after spending $100 million on refurbishment.

Chinese real estate owners were told to get their money out of Australia, but Daydream failed to sell.

Notably, Lindeman Island’s Chinese owners put that island on the market, but did manage to sell it.

Dunk Island, Lizard, Long and Hook Islands have all sold through CBRE Hotels over the past two years.

CBRE Hotels director Raymond Tran highlighted the positives to buying South Molle.

“With this significant growth in Australia’s tourism market, the weakening dollar and the volume of international capital flight heading to Australian shores, CCIG is eager to capitalise on its investment to recycle the funds back into its Australian businesses,” Tran said.

CBRE Hotels national director Wayne Bunz said “The Whitsunday region proved to be one of the most resilient markets through the pandemic and was recognised as the world’s second most loved tourist destination in 2022 by the Tourism Sentiment Index highlighting the region’s robust tourist market and recent strong demand.”