Construction has commenced on Festival Tower Two, set to become Adelaide's first skyscraper, standing at 38 storeys and 160 metres. The project, located behind South Australia's Parliament House, is proceeding despite continued concerns from some groups. The development aims to be a new benchmark for sustainable design in Australia and is expected to significantly reshape the city's skyline.
The stakes involve significant urban transformation, economic projections, and heritage preservation.
The timeline spans from proposal to construction, with approvals granted in mid-2025.
Key actors include the South Australian government, developers, and opposition groups.
Project Details and Timeline
The Festival Tower Two project, part of the larger Festival Plaza development, received approval from the SCAP (South Australian Commission Assessment Panel) in mid-2025. Initial proposals for the site included a three-storey retail building, which was deemed to have limited economic benefit and would have obstructed views of Parliament House. The current 38-storey design, however, was developed following extensive design review and community consultation, with enhancements made to public access, landscaping, and connectivity to civic landmarks like Adelaide Railway Station and Adelaide Oval.
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Construction of the 38-storey, 160-metre tower has now begun.
Plans were approved in mid-2025 after community consultation and design reviews.
The project replaces an earlier, smaller retail building proposal.
Official Stance and Economic Projections
The South Australian government has championed the skyscraper as a symbol of a "confident, modern Adelaide" and a project that reflects the state's global ambitions. Premier Peter Malinauskas stated that the development is a "transformative project" and reflects a growing confidence in the state's economic trajectory. It is projected to inject an estimated billion dollars annually into the state's economy. Minister Nick Champion highlighted the building's sustainable design, noting it will be the most sustainable office building in Australia and Adelaide's first 6-star NABERS energy building.
"The development will feature landscaped plazas, outdoor dining, and pedestrian laneways, creating an active, accessible precinct. Minister Nick Champion called the development a new benchmark for sustainable design, and a symbol of a confident, modern Adelaide." - Council on Vertical Urbanism
The government views the skyscraper as a symbol of confidence and ambition.
Economic benefits are projected to be substantial, estimated at $1 billion annually.
Sustainability is a key feature, with the building aiming for top environmental ratings.
Opposition and Site Concerns
Despite official endorsement, opposition to the project persists. The Festival Plaza Alliance has raised concerns, with convenor Robert Farnan stating the site is "inappropriate" and will cast a "permanent shadow" over Parliament House. This suggests a fundamental disagreement on the project's suitability and impact on the historic precinct.
"Festival Plaza convenor Robert Farnan said the site was inappropriate, and would put parliament in a permanent shadow." - ABC News
Opposition groups argue the site is inappropriate.
A primary concern is the potential for the tower to cast a shadow over Parliament House.
Design and Sustainability Features
The Festival Tower Two design incorporates several notable features. It will include 30 floors of premium office space, a rooftop bar and restaurant, and a raised outdoor podium for public use. The building is designed to be Adelaide's largest all-electric commercial structure, featuring the city's largest solar array on a commercial building. The design also acknowledges Kaurna heritage, with elements tied to local stories. A new ten-metre-wide laneway is being created between the tower and Parliament House, intended to host shops and cafes, further activating the plaza.
The tower will house office space, dining, and public areas.
It is designed as an all-electric building with a significant solar array.
Heritage elements are included in the design.
A new laneway with retail and hospitality is part of the plan.
Expert Analysis on Urban Development
The development of Adelaide's first skyscraper signifies a notable shift in the city's urban fabric. Proponents emphasize its role in boosting economic activity and modernizing the skyline. The Council on Vertical Urbanism noted the SCAP's approval followed "extensive design review and community consultation," leading to "enhancements to public access, landscaping, and connectivity." Conversely, concerns about overshadowing and site appropriateness, as voiced by groups like the Festival Plaza Alliance, point to the perennial tension between development and heritage preservation in urban planning.
The project represents a significant urban development for Adelaide.
Consultation and design reviews aimed to integrate public access and connectivity.
Opposition highlights the ongoing debate between development and heritage concerns.
Conclusion and Future Implications
The commencement of construction on Festival Tower Two marks a definitive step in Adelaide's urban evolution. The project, backed by government investment and a vision for economic growth and sustainable design, is poised to become a landmark structure. However, the persistent opposition, primarily centered on the siting and its potential impact on Parliament House, suggests that community engagement and resolution of these concerns will remain pertinent. The success of the tower will be measured not only by its economic contributions and environmental performance but also by its integration into the existing civic landscape and its reception by the broader community.
ABC News
Council on Vertical Urbanism
9News
Mirage News
Build Australia
Inside State Government
