SYDNEY - Chinese investors have bought a tropical island resort off the east coast of northern Australia for $30 million, local media reported on Tuesday.

The Shanghai-based China Capital Investment Group (CCIG) will purchase Queensland's Daydream Island Resort in mid-March 2015, subject to government approval.

The 4.5-star Daydream Island Resort and Spa has 296 rooms and suites, while the island's "Living Reef" is a popular attraction with about 80 species of fish and 50 coral varieties.

Daydream Island owner Vaughan Bullivant told Fairfax Media that he was delighted that he had found an investor that can continue to operate Daydream with the current management team and take it securely forward.

"The new owners also have an opportunity to develop further the southern end of the island and offer new accommodation experiences, " he said.

Chairman of CCIG Zhou Chuanyou said in a statement: "We look forward to improving the property and providing both domestic and international guests with a continued high level of quality service and enhancing their holiday experience."