The redevelopment, which involves demolishing the ageing Central Market Arcade and building a new retail space and a 38-storey office, hotel and residential tower, was originally set to begin in 2021 ahead of an anticipated opening next year.

But the project’s timelines have been pushed back several times, most recently in November following a request from the Adelaide Central Market Authority to suspend work until this month to avoid construction impacts on traders over Christmas.

The project, which is jointly-funded by the Adelaide City Council and Melbourne-based developer ICD Property, is now listed on the council’s second quarter business plan and budget update as having “risks that are being managed and may exceed budget or time”.

Lord Mayor Jane Lomax-Smith told InDaily that the council considered it “vital” to pause work on the redevelopment over Christmas to ensure market traders could serve customers during the market’s busiest weeks.

She said the project – called Market Square – was impacted by “construction and timing challenges” such as supply chain and skilled worker shortages, which were impacting other major projects.

“A revised program of works is being prepared now in consultation with project stakeholders and contractors,” she said.

“Major construction works should commence in the second quarter of 2023, with construction over 3 – 3.5 years.”

The retail space is due to be complete in 2025, with the residential component due for completion in 2026.

An artist’s render of the Central Market Arcade redevelopment from Victoria Square. Image: supplied.

Lomax-Smith described the redevelopment as “complex”, saying there were multiple stages of soft strip, enabling works, service disconnections and hazardous material removal which had to take place before substantial demolition could begin.

She insisted the project would “be delivered through to completion”.

“Early enabling works continue, including critical and complex relocation of services, but ensuring there is no disruption to Central Market traders,” she said.

According to the council’s budget update, which was presented to councillors last night, ICD Property has already undertaken “on-site enabling works”, including the provision of interim access arrangements for the neighbouring Samuel Way building.

The update states service relocations and site establishment works have separated the Central Market Arcade from the adjoining Central Market building.

Site hoardings have been erected and signage installed on Grote and Gouger Streets.

Once complete, ICD Property will own and manage the central tower, which will include the supermarket, residential, office and hotel component of the development, as well as an elevated 3000-square-metre public terrace.

The bottom floors will be connected to the Central Market and will include a range of food, wine and homewares shops, as well as restaurants, cafés and bars which are planned to be open 18-hours a day, seven days a week.

ICD Property has pre-sold over 96 per cent of the apartments and recently announced that HEI Schools had signed a 10-year lease to become the operator of Market Square childcare centre.

It is yet to announce which companies will run the supermarket and hotel.

According to ICD Property’s website, Market Square is “the fastest-selling project in Adelaide’s history”.

The developer claims it is also “set to break the record for most expensive Adelaide property”, with a penthouse priced at $10 million.

The Central Market will remain open for business while the arcade redevelopment is underway.

The Adelaide City Council has committed to spend $26.6 million of ratepayer money on the redevelopment.