Bold opening: Adelaide’s skyline is set to change dramatically, but not in the way everyone expected. Major construction has begun on Festival Tower Two—Adelaide’s first skyscraper—but there won’t be an airbridge to Parliament, and the project will finish later than planned.
Festival Tower Two will rise to 160 metres, edging into “skyscraper” territory by a margin of 10 metres. Walker Corporation leads the $800 million, 38-storey build on state-owned Festival Plaza land, nestled between Parliament House and the Festival Theatre. The development sits adjacent to Festival Tower One (opened in 2024) and above the underground Festival Car Park completed in 2021.
Premier Peter Malinauskas emphasizes the project’s economic impact, estimating construction will create more than 1,300 jobs, with up to 5,000 people occupying the building in the long term. He frames the second tower as revitalizing a previously rundown plaza and turning it into a hub of commerce, culture, and community.
On the airbridge idea, the premier stated there would be no connection to Parliament. A proposal previously contemplated cutting a hole in Parliament’s northern facade to link an office corridor into the tower was rejected due to cost and heritage concerns.
Save Festival Plaza Alliance’s convenor, Robert Farnan, criticized the site choice, arguing it would cast Parliament into permanent shadow and suggesting a three-storey alternative on the plaza would have been preferable. He warned that an office building at the plaza’s center could turn the area into a national joke.
Regarding the project timeline, Planning Minister Nick Champion noted that planning gates and approvals have caused delays, pushing completion from 2029 to the end of 2028. He declined to disclose the land-lease figure Walker Corporation pays for the riverfront site, though the premier hinted it is significantly higher than the commonly cited $1 per year.
The premier also touched on Tarrkarri, Adelaide’s Aboriginal arts and cultural centre planned for the old Royal Adelaide Hospital site near North Terrace. Four years ago, the Liberal government announced construction, but Malinauskas’s government halted work to review costs. The results remain unpublished, with the premier attributing the delay to a lack of external funding. He even jokingly asked Walker Corporation chief executive David Gallant to contribute hundreds of millions toward Tarrkarri, reiterating that the government’s policy remains unchanged: they’d love to see Tarrkarri realized but require additional funding from outside the state government.
Opposition Leader Ashton Hurn criticized the Tarrkarri site as a “shameful dust bowl,” while promising to unveil Liberal plans for the project before the state election on March 21.
If you’re weighing the stakes here, the heart of the debate isn’t just about a new tower. It’s about how a city balances growth with heritage, cost, and public space—and who ultimately benefits from such transformative projects. Do you think Adelaide’s approach with Festival Plaza and Tarrkarri strikes the right balance between progress and preservation, or should different priorities take precedence? Share your thoughts below.
