THE former home of the Royal Flying Doctor Service at Edge Hill is to become an upmarket residential subdivision.

Cairns-based developer Stateland Pty Ltd bought the 1.3ha site for $1.615 million in June this year, according to RP Data.

The buildings, including the administration centre, the visitors centre and two houses, have been demolished and the site at Junction St cleared.

Stateland project manager Phil Druerysaid civil earthworks involving sewerage, water and other amenities by FGF Developmentswas scheduled to start on January 7 and were due for completion in February.

The sites will be reconfigured into five housing lots, ranging from 2457sq m to nearly 3000sq m and set to front Junction St.

"To preserve the amenity of the suburb there will be a covenant over the titles, which will allow only one further subdivision of a maximum of 800sq m each," Mr Druery said.

"One of the biggest benefits is the size of the lots and there is a creek at the rear with a nice forest backdrop."

Mr Druery said they had managed to retain most of the trees on the site. New owners would be able to start building from March.

He said the developers working with Down To Earth Demolition had managed to save a feature ceramic mural at the visitors centre which had been relocated to the new RFDS base at Cairns airport.

Stateland, which is headed by managing director Peter Macdougall, has been involved with homes at Argentea Palm Cove, Paradise Point Palm Cove, Kewarra Beach, the Sanctuary Palm Cove Resort and Oasis at Palm Cove resort.

The RFDS moved from Edge Hill to a new $5.3 million base at the airport in 2008.

The mural is now part of the front fence at the airport. It features an Outback scene and was donated in 1988 by the community of Chillagoe and employees at Red Dome Gold Mine and Elders Resources Ltd.

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