The great escape: Why northern Queensland is becoming Australia’s quiet luxury hotspot

Homeowners in Sydney and Melbourne are looking north to the Great Barrier Reef in search of laid-back luxury and unspoilt beaches, says Ruth Bloomfield.

For those who find the ocean’s pull irresistible, the Great Barrier Reef and its 344,400 square kilometres of pristine coral teeming with rare aquatic life is possibly the greatest destination in the world.

The opportunity to live in high comfort and within easy distance of the world’s largest reef is turning some of northern Queensland’s resort towns into luxury property hotspots filled with ultra-modern houses aimed at wealthy city buyers looking for change.

As a result, the real-estate market in Queensland is outperforming Australia’s better-known prime locations. The average house sale price in Queensland jumped by 8.5 per cent in 2024, reports the Real Estate Institute of Queensland, compared to 2.3 per cent in Sydney, according to CoreLogic.

But for now, you will still get more bang for your buck by heading north, beyond Sydney and the Gold Coast.

“To sell their property in Sydney or Melbourne, buy something for half the price, and then invest the rest [of the money] or use it to buy the perfect boat seems to be a common theme with new purchasers,” says Wayne Singleton, director of Whitsundays Queensland Sotheby’s International Realty.

The Whitsundays, an archipelago of 74 islands in the Coral Sea, are mostly uninhabited, but there’s a thriving community on Hamilton Island. Buyers can expect to pay around AUD$4 million (£1.88m) for a four-bedroom house with sea views, and around $1.2 million for a two-bedroom apartment.

“Whitsunday Island would have to be one of the most desirable locations in the world; it’s unbelievable for boating,” said Singleton.

High-net-worth buyers discovered this gem during the Covid-19 lockdowns and sale prices shot up 30 per cent between 2021 and 2023. Growth then returned to around five per cent during 2024, as pandemic buying slowed to normal levels. However, Singleton still deals with a steady stream of buyers, mostly in their forties and fifties, looking for a second home.

Hamilton Island has its own airport with direct flights to major Australian cities. “It is a safe haven with no crime and perfect weather most of the year,” Singleton says. “Electric golf buggies are our mode of transport, with a choice of restaurants, a championship golf course and some of the safest anchorages to explore the Great Barrier Reef.”

Along with its scenery, this quiet luxury vibe is attracting buyers from ritzy resorts along the Gold Coast and into the more homespun north. Another beneficiary is Palm Cove, a beach enclave 24 kilometres north of Cairns. With the sea on one side and Kuranda National Park on the other, it is an ideal spot to immerse yourself in nature. Locals walk barefoot, travel by bike and spend downtime in or on the water. It’s reportedly the spa capital of Australia, and despite its diminutive size it has a wide range of upscale restaurants and bars.

Property prices in Palm Cove are a little lower than on Hamilton Island. Jason Monk of McGrath Estate Agents, Knight Frank’s partner in Australia, estimates that a four-bedroom villa with a pool and sea views would set you back between $2.5 million and $1.5 million. 

Two-bedroom apartments, also with a sea view, are between $800,000 and $1.5 million. Monk estimates that in the past year, prime prices have increased five to 10 per cent in Palm Cove, due to customers from Sydney, Melbourne or Brisbane purchasing holiday homes or semi-permanent residences.

“Since the pandemic, there has been a notable increase in remote workers moving to northern Queensland,” says Monk. “Many have reassessed their priorities, choosing lifestyle destinations where they can work remotely while enjoying the benefits of space, nature and a slower pace of life.”

About 40 kilometres along the coast from Palm Cove, a similar buyers’ cohort looking for a buzzier feel heads to Port Douglas. Barbara Wolveridge, director of Queensland Sotheby’s Realty, estimates that a four-bedroom home with Port Douglas coastline views would cost between $5 million and $10 million. Like other Queensland hotspots, prices shot up during at the height of the pandemic, but have started to recalibrate over the past couple of years.

Its mix of small-town charm and high-end amenities make it perfect for a holiday home or investment purchase, explains Amanda Haines at Queensland Sotheby’s International Realty Port Douglas. “The region offers rainforest hikes, secluded beaches, world-class diving and unparalleled boating beyond just a sunset sail in Sydney Harbour.”

First published in the June 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.