Downturn in paradise ... tropical island prices slashed

SYDNEY - Fancy owning your own slice of paradise? Tropical islands off Australia have rarely been cheaper, with dozens on the market and the global financial crisis driving down prices.

At least 11 islands and resorts off the Queensland coast are for sale, with some prices slashed by nearly half compared with a year ago. They include the Hunt Resort on Fitzroy Island, near Cairns, where the television series The Biggest Loser was filmed.

Some of the islands offer not only long, white beaches but all the accoutrements of a jetset lifestyle, such as mansions, swimming pools and twin-engined aircraft.

Take Turtle Island, in the southern Great Barrier Reef, which the Hollywood star Julia Roberts narrowly missed out on eight years ago.

Roberts was pipped by an Australian property developer, who initially offered it for sale for A$6.75 million ($8.35 million) but is now open to "any reasonable offer".

The 9.3ha island has an opulent residence perched high on a hill, with its own guest wing, five bathrooms and an enormous kitchen and larder, capable of "catering for the biggest celebrity party", according to the estate agents. Then there is the helipad, pool and jetty, not to mention the grounds, planted with botanical gardens.

If that seems excessive, how about Temple, a small, "boutique" island, on sale for just A$1.5 million? Temple boasts a 1.1km private airstrip and a four-bedroom house surrounded by rainforest. Whales pass by twice a year; oysters may be plucked off the rocks; sea turtles nest on the sandy beaches. However, the property "needs work", says Richard Vanhoff, of Coldwell Banker Capricorn Coast Realty.

Some islands have been on Vanhoff's books for more than a year, and he acknowledges that vendors are having to be realistic. "Islands are not recession proof," he says. "But there are still a lot of people out there with money who want that lifestyle."

Most prospective purchasers are 35-55, according to Vanhoff. "Some are looking for a sanctuary or getaway. Others would see it as a mark of success, proof that they've made it."

Some of the Queensland islands changing hands are not private refuges, but well-known resorts. They include Dunk Island, off Mission Beach, one of five sold at knock-down prices last month by the Voyages company. Like many such destinations, the resorts - where rooms cost up to A$2000 a night - have been hit by a fall in international visitor numbers.

Vanhoff, ever upbeat, suggests Marble Island is a good buy at A$15 million, since it includes two neighbouring islands. "So if you have three children, you could bequeath each of them an island."