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Australian investors with deep pockets are snapping up dilapidated Queensland islands, prompting optimism from the tourism industry they will be returned to their former glory.
Key points:
- Lindeman Island is the latest among the Whitsundays to be sold to an Australian Investor
- Over the last 18 months, Hook, Long, Dunk and and Lizard islands have all been bought by Australian investors
- The future remains uncertain for Great Keppel, Keswick, Brampton and Double islands
The latest island to go under contract is Lindeman Island, near Airlie Beach in the Whitsundays.
CBRE Hotels national director Wayne Bunz brokered the sale and said contracts had been exchanged with settlement expected in early 2023.
But Mr Bunz stopped short of revealing the identity of the buyer or the sale price.
"I'm pleased to report that it has been sold to an Australian owner, but due to client confidentiality we can't reveal the new owner's name," he said.
Lindeman Island was once home to a Club Med resort but has sat idle for a decade since it was bought by Chinese developer White Horse, with big promises of a $580-million revitalisation that came to nothing.
A return of confidence
The Lindeman contract followed a string of island sales to Australian rich-listers over the past two years.
Queensland Tourism Industry Council chief executive officer Brett Fraser said it showed a return to confidence in Queensland tourism.
"These sorts of assets are challenging and the fact that we have seen the changing of hands in those islands is positive," he said.
"Island resorts across Queensland have been the cornerstone of the tourism industry for decades, so getting them back on the market for customers is a great idea."
Australians investing
Annie Cannon-Brookes, wife of tech billionaire Mike Cannon-Brookes, in July bought the troubled Dunk Island off Mission Beach in Far North Queensland.
The former 160-room Dunk Island Resort, which had previously boasted a nine-hole golf course, restaurants, tennis courts and day spa, was flattened by Cyclone Yasi in 2011.
The island had seen a number of sales fall through, including in 2020 after the beleaguered Mayfair 101 group bought it in 2019.
A spokesperson for Ms Cannon-Brookes said she purchased the land "with the intent to preserve its natural beauty for years to come".
Sydney developer Glenn Piper in May bought the cyclone-battered Hook Island in the Whitsundays, while in May 2021, a New South Wales hospitality group snapped up another Whitsunday gem, Long Island.
Back to 'former glory'
Other recent sales include mining magnate Andrew "Twiggy" Forrest's purchase of Lizard Island, and Sydney venture capitalist Shayne Smyth's purchase of Elysian Retreat on Long Island.
"There has been a definite shift in where investment has come from over the past few years," Mr Fraser said.
"We are now seeing a lot more localised investment.
"It gives me confidence that we will see these assets brought back to their former glory."
Mr Bunz believed the Lindeman Island sale contract fed off the sale of other islands.
"We always welcome foreign investment into our property and tourism sectors, but it is great to see strong demand from Australian investors into owning and reinvesting into these islands," he said.
"The Brisbane Olympics have really put Queensland on the map and a lot of smart money from down south is making its way north."
Challenges remain
The future remains uncertain, however, for other Queensland islands dotted along the coast, including Great Keppel, Keswick, Brampton and Double islands.
A Queensland parliamentary inquiry is investigating whether the economic and regulatory frameworks for the state's island resorts are still adequate, with the committee due to table its report by March 2023.
"Those islands are good examples of some of the challenges that we face with tropical islands," Mr Fraser said.
"Those islands are exposed to challenging environmental conditions and the last few years through COVID-19 certainly hasn't helped that.
"The return of domestic tourism over the past 12 months is back to pre-COVID levels, and we are hoping that with the return of international travel, it will motivate those owners to re-look at those islands."
Mr Bunz said a growing number of Australian investors were seeking to take advantage of the rising interest in Queensland's tropical islands.
"COVID had a positive impact as well, as Australians rediscovered their own backyard," he said.
"A lot of Australians had never experienced the Great Barrier Reef. The Whitsundays and Cairns are probably experiencing their strongest trading conditions in a couple of decades."