Paradise Palms Resort and Water Park Plans Abandoned After Costs Surge
Cairns Master-Planned Development Scaled Back
A major $300 million master-planned development on the northern beaches of Cairns has been significantly reduced after developers officially scrapped plans for a large-scale resort and water park precinct at the former Paradise Palms golf course site.
Developer PPNQ Developments confirmed this month that the tourism-focused section of the project would not proceed, despite approximately $21 million already being spent on early civil earthworks.
The decision leaves behind a partially excavated wave pool, a 20-hectare cleared construction zone, and shipping containers filled with imported water slide components sitting unused on the property.
Former Championship Golf Course Targeted for Major Redevelopment
PPNQ Developments purchased the 113-hectare Paradise Palms site in 2015, when it was still operating as a championship golf course.
After the golf course closed in 2019, the company announced plans for “The Palms,” a large mixed-use development combining residential housing, tourism infrastructure, and community facilities.
The original proposal included:
- New residential housing lots.
- A primary school, retail shops, restaurant, bar, and walking tracks.
- A water park featuring more than 20 slides and a 2,500-square-metre wave pool.
- More than 360 tourist villas.
Initial construction works began last year, but all activity tied to the tourism and resort components has now stopped.
“It’s heartbreaking for all of us. But at some point, you’ve just got to say enough is enough… [When] you borrow money off the bank, interest keeps on burning whether you’re operating or not. That’s why they say in development, time kills all deals.” — Darren Halpin, PPNQ Managing Director
Rising Construction Costs Blamed for Cancellation
PPNQ management said the cancellation was driven by escalating construction costs linked to geopolitical instability in the Middle East.
According to the company, supply chain disruptions caused the cost of key building materials — including steel, bitumen, and cement — to rise sharply, adding an estimated $30 million to the project budget.
The developer said attempts to preserve the tourism elements through staged construction, project downsizing, or external investment partnerships were ultimately unsuccessful.
The Paradise Palms decision reflects broader financial pressures affecting large development projects across Queensland, including a proposed $2.6 billion theme park project north of Brisbane and a $65 million luxury apartment development in Townsville.
Residential Development Continues
Despite the cancellation of the resort and water park plans, parts of the broader master-planned community have already been completed or remain active.
More than 130 residential lots have been delivered, with most homes already constructed. PPNQ said land values within the estate have doubled over the past four years.
Community facilities including a public playground and amphitheatre are also complete and operational.
The Catholic Diocese of Cairns still plans to build a primary school on a 3.8-hectare parcel purchased from PPNQ in 2020, although the timing of construction remains dependent on future population growth.
Future of Resort Site Remains Unclear
Other components of the original master plan have either been reduced or placed on hold.
In 2024, PPNQ sold a 24-hectare parcel originally intended for housing and green space to Serenitas for development as a retirement village. The transaction reduced the amount of planned walking trails within the estate by approximately 30 per cent.
Plans to convert the former golf clubhouse into a commercial hub have also been paused.
PPNQ is now reviewing future options for the vacant 20-hectare resort footprint, including bringing in outside buyers to revive tourism plans or rezoning the land for additional residential housing to meet local demand.
