Market Square development hit by another delay due to asbestos find

A $400m CBD redevelopment has hit another stumbling block, with major construction halted until the new year after a safety risk was found.

Artist’s impression of the Market Square project.

The $400m redevelopment of the Central Market Arcade has hit another stumbling block, with major construction halted until the new year following the discovery of asbestos during demolition work.

Contractors have spent several weeks remediating the soil, and while that work is expected to wrap up this week, developers say construction is unlikely to resume before the end of the year.

Work on the Market Square project – a joint venture between Melbourne developer ICD Property and the Adelaide City Council – was originally meant to start in 2021 and be completed next year.

But the project has been hit with a series of delays, most recently due to design changes which were approved earlier this year, paving the way for demolition work to commence in June.

When national building firm Multiplex commenced demolition and construction work, the company’s state manager Andrew Warren said construction was likely to take around three years to complete.

According to latest estimates, the first stage of the project, including the office component and first-stage apartments are due for completion in 2025, ahead of a new retail offering and hotel in 2026.

Artist’s impression of the Market Square project.

ICD Property chief executive Matt Khoo said the latest setback was unlikely to result in any “material delays”.

“Asbestos removal and associated site works are expected to conclude this week,” he said.

“Formal certification to confirm completion of works is necessary prior to construction progressing.

“There are no material delays to progress as a result of this work.

“We’re still awaiting formal certification for completion of the asbestos removal works and at this stage we’re expecting to resume normal works in the new year.”

The Market Square development will feature a hotel, 234 apartments, 21,700sq m of A-grade office space, a 11,000sq m-plus retail precinct and a 3000sq m elevated garden.

In March, the council approved an additional 21 apartments, more office space and two extra storeys, as well as several other design changes.

The amendments came after global construction costs rose by around 20 per cent, prompting council to increase its contribution to the project to $31.92m, $9.3m more than originally planned.

At the time Mr Khoo said it was “no secret” the construction industry was under pressure, but the company had been able to “safeguard Market Square from the worst of it”.