Forget a fancy beach house, there’s a private island in the heart of the Great Barrier Reef that looks set to sell for less than a Bondi home or Byron weekender. 

Sitting at the southern end of the Whitsundays about 1000km north of Brisbane, Victor Island is a private 3.14ha island that has appeared on and off the market since 2021.  

Now the Queensland island must sell via a mortgagee auction this week.  

Ray White Commercial Gold Coast and Ray White Rural Sarina are taking the island to public auction on April 11 under instructions of the mortgagee.  

Under Queensland legislation, however, selling agents are prohibited from providing a price guide for properties being auctioned. 

Originally launched three years ago with a $4.7 million price tag, the island has seen several discounts with the most recent asking price down as low as to $2.75m by late 2023.  

Given that no one has snapped it up, it’s likely to go for less than its last sale price of $3.655m when Sydney-based private investment consortium Kingdom Developments bought it in 2018. 

Victor Island is going to auction on April 11. Picture: realestate.com.au/buy

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“It’s appeared over time with a few different agents, each time with a ‘for sale’ price. It’s now come to a point where there is no other option than to take it to auction,” said Matt Taylor of Ray White Commercial, adding that due to the conditions of sale, he wouldn’t be giving any indication on price. 

“People have been keeping their cards pretty close to their chest when it comes to what they’re willing to spend. I suppose we just won’t know until auction day how many of those people have been seriously interested. But it’s pretty exciting to think someone will have the use of their own island.” 

A private island on the market for less than the cost of a mainland coastal home might seem too good to be true, and indeed there is a catch - the title is a unique leasehold listing as are all of the Whitsundays. 

The property is held under a lease from the Queensland Government until January 28, 2034.

The renovated four-bedroom home on Victor Island comes with a helipad and caretaker's cottage. Picture: realestate.com.au/buy

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Essentially, the island is owned by the state and is leased back to the registered lessee subject to certain conditions.  

Mr Tayor said some interested parties are aware of the leasehold status while others are a little unsure what it entails. 

“Many understand the leasehold but some don't really understand the terms and conditions associated with it. We get them to read through the title and all the relevant information so they're up to speed, but I'd say about half get it, and half don't really have any idea,” he said. 

“With only about 10 years left on the lease it’s been expressed as a concern, obviously, and we just simply can’t promise whether or not it’ll be extended.” 

Such agreements can come with additional annual fees, council rates for services that aren’t provided, and general maintenance.  

Accessing everyday supplies can also cost considerably more to order or transport than on the mainland. 

Marketed as an idyllic spot to unwind and disconnect, the dream ocean property is hardly cut off from civilisation with high-speed internet and mobile phone service.  

It’s also only a 20-minute boat ride from the mainland town of Salonika Beach or a 10-minute helicopter ride from Mackay airport. 

The island has 225,000-litre rainwater storage, solar panels and a backup generator. Picture: realesate.com.au/buy

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Physically cut off from the mainland and town utilities, there is rainwater storage of up to 225,000L, a desalination plant and a solar farm with a backup generator. 

“The island is eco-friendly and predominantly self-sufficient, powered by the sun and harvested rainwater, filtered for drinkability,” said RWC Gold Coast co-agent Michael Willems.  

“It’s its own sanctuary, with no neighbouring islands or other properties in close proximity, it really is the perfect paradise hideaway. 

Victor Island is surrounded by clear blue waters and has a 350sqm four-bedroom house, a separate caretaker’s cottage, machinery buildings and a helipad.  

Victor Island is just a short boat or helicopter ride from Mackay. Supplied.

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The lush landscaped grounds include walking tracks, sandy beaches and some rocky coastline. 

“The island is ready for its new owners to move right in, or it’s ready for business and could be used as a holiday rental or exclusive year-round retreat,” Mr Willems added.  

As a holiday rental, the property has a history of making approximately $1750 a night. 

Victor Reef extends off its coast so snorkelling is literally on the doorstep and the coral shelf provides a natural marina to moor vessels and view marine life. 

The property will be auctioned on 11 April, at 11am, at the Gold Coast Turf Club, Racecourse Drive, Bundall.