Adelaide's First Skyscraper: Festival Tower Two Construction Begins (2026)

Adelaide is about to reach new heights—literally. Construction has officially kicked off on the city’s first skyscraper, Festival Tower Two, but not without its fair share of drama and debate. This 160-meter giant, towering 10 meters above the traditional skyscraper threshold, is set to reshape Adelaide’s skyline. But here’s where it gets controversial: the project, spearheaded by Walker Corporation, has scrapped plans for an airbridge connecting the tower to the state parliament, and completion has been pushed back a full year to the end of 2028.

Festival Tower Two, a $800 million, 38-storey behemoth, will rise between Parliament House and the Festival Theatre on the state-owned Festival Plaza. Premier Peter Malinauskas hailed the project as a job creator, promising over 1,300 construction jobs and up to 5,000 permanent positions once completed. ‘This tower will transform a once-neglected plaza into a hub of commerce, culture, and community,’ he said. But not everyone is cheering. Critics like Save Festival Plaza Alliance convenor Robert Farnan argue the site is ill-suited, claiming it will cast Parliament House into permanent shadow. ‘Putting an office in the middle of a plaza is ridiculous,’ Farnan quipped, suggesting a previous three-storey proposal was far more appropriate.

And this is the part most people miss: the airbridge idea, which would have connected the tower to parliament, was nixed due to cost and heritage concerns. ‘It just wasn’t a good idea,’ Malinauskas admitted. Meanwhile, Greens MP Robert Simms slammed the project as ‘a total waste of prime real estate,’ calling the towers ‘monstrosities’ overshadowing Parliament House. Opposition Leader Ashton Hurn, however, welcomed the addition, saying it would enhance Adelaide’s skyline.

But the controversy doesn’t end there. The project’s delay has raised questions about transparency, particularly regarding Walker Corporation’s lease agreement for the land. While Malinauskas hinted the state is earning ‘a lot more’ than the rumored $1 a year, specifics remain under wraps. And let’s not forget the stalled Aboriginal arts and cultural center, Tarrkarri, which Malinauskas’ government paused due to a cost blowout. The premier joked about seeking ‘a few hundred million’ from Walker Corporation’s CEO, but the project’s future remains uncertain, leaving the site a ‘shameful dust bowl,’ according to Hurn.

So, here’s the big question: Is Festival Tower Two a visionary leap forward or a missed opportunity for Adelaide? And what does the future hold for projects like Tarrkarri? Let us know your thoughts in the comments—this debate is far from over.

Adelaide's First Skyscraper: Festival Tower Two Construction Begins (2026)
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