the tower is expected to employ over 1,300 workers in roles including engineering, project management, and building trades. Photo credit: Darryl Leach/Shutterstock
Adelaide has launched one of the largest urban redevelopment projects in recent Australian history with the start of construction on the second tower at Festival Plaza. The new skyscraper, known as Festival Tower Two, is expected to stand 160 metres tall and include 38 storeys, surpassing standard heights for similar developments in the city.
Valued at approximately US$800 million, the project is forecast to generate over 1,300 jobs during construction and accommodate up to 5,000 workers once completed. The development will significantly alter the city’s skyline, establishing Adelaide’s first true high-rise tower of this scale.
Construction timeline and planning changes
Construction began in early this year, following years of planning and regulatory approvals. While initial projections aimed for completion in 2027, the schedule has been extended, and the tower is now expected to be ready by late 2028.
One notable adjustment involves the cancellation of a previously proposed aerial walkway connecting the new building with the historic Parliament House. Officials cited both the high cost of the structure and the heritage considerations of altering the Parliament’s façade as reasons for abandoning the plan. These changes reflect a broader approach to balancing modern urban development with preservation of Adelaide’s historical architecture.
Integration with existing infrastructure
Festival Tower Two will complement Festival Tower One, which was inaugurated in 2024, and the adjacent underground parking complex completed in 2021. Together, the two towers are intended to form a central business hub within Festival Plaza, combining office space with commercial and public facilities.
The project also anticipates modernisation of surrounding public spaces to accommodate increased foot traffic and to enhance accessibility. Planners have highlighted the need for improved transport connections and pedestrian pathways, although specific upgrades have yet to be detailed publicly.
Economic impact
Officials emphasise that the tower will provide a significant economic boost to the city. The construction phase alone will employ over 1,300 workers in sectors including engineering, construction, and project management. Once operational, the building is expected to create thousands of ongoing roles, with up to 5,000 personnel occupying the offices and commercial spaces.
The investment is projected to contribute over US$1 billion annually to the local economy through employment, associated business activity, and increased property values in the surrounding area. Experts suggest that the development could establish Adelaide as a more competitive destination for corporate tenants and international investors.
Political support and public reaction
South Australian Premier Peter Malinauskas has highlighted the project as a milestone for Adelaide’s urban transformation. In public statements, he emphasised the tower’s potential to modernise the city centre and generate employment while positioning Adelaide as a regional economic hub.
However, the development has faced criticism from community groups, heritage organisations, and the Green Party. Concerns focus on the tower’s location and its potential to cast shadows over Parliament House, potentially affecting both aesthetics and historic visibility. Critics have also questioned the appropriateness of using a prominent civic space for high-rise office development rather than cultural or public amenities.
In response, political opposition leaders have defended the project, arguing that it will enhance the city’s skyline and attract business investment. The government has stated that it considered alternative proposals but determined that the economic benefits outweigh the aesthetic concerns.
Heritage considerations
The project team has worked to mitigate the impact on heritage sites, particularly the Parliament House façade. Heritage preservation officers were consulted to ensure that construction activities and design choices minimise alterations to historic structures.
The cancellation of the proposed skywalk was partly motivated by these considerations, reflecting an ongoing compromise between urban development ambitions and protection of Adelaide’s cultural landmarks.
Cultural and urban development context
The Festival Tower Two project forms part of a broader initiative to revitalise Adelaide’s city centre. Previous projects include the completion of underground parking in 2021 and the construction of Festival Tower One in 2024. Together, these initiatives aim to improve the functionality, accessibility, and visual profile of Adelaide’s central business district.
At the same time, other civic developments, such as the Tarrkarri Aboriginal cultural centre, remain on hold due to funding constraints, highlighting the challenge of balancing large-scale commercial investments with cultural and community priorities.
Upon completion in late 2028, Festival Tower Two will establish Adelaide’s tallest skyscraper in decades and signal a new era of vertical urban development in the city. The project will likely influence planning decisions for future high-rise developments, particularly with respect to heritage integration, urban density, and economic stimulus.
The tower’s completion is expected to redefine Adelaide’s skyline, create employment opportunities, and provide modernised office and commercial space for domestic and international tenants. City planners and officials view it as a transformative step in Adelaide’s ongoing evolution as a business and cultural hub.
