The wrecking ball has finally hit the 62-year-old Hunter Street Mall car park.
Demolition machinery could be seen at the site this week with part of the structure now visibly torn down. The car park was closed in March 2020 due to structural concerns.
City of Newcastle said three acoustic shelters had been implemented to minimise noise during demolition work.
The demolition phase began in May and is expected to be completed by August, which council said will "reveal the stunning view corridor".
The project has been drawn out and the cost doubled due to unexpected asbestos and cabling issues. More than 13,000 asbestos pods and 3,250 tonnes of contaminated soil were removed from the site prior to demolition.
Contractors have also finished installing a 60-metre protective reinforced concrete culvert over the high voltage cables servicing the substation in the basement and a protective structure around the substation.
Once the demolition is complete, the ground floor slab along Laing Street will be left in place and exposed earth sections of the site will be sealed to prevent run-off and minimise dust.
The site will then be fully fenced.
City of Newcastle CEO Jeremy Bath said consultation on a new structure, which is set to retain car spaces, would occur later this year.
He said COVID and working from home had changed the nature of people's movement into the inner city and need for car parking, and the new space would reflect predicted future use.
A priority will be protecting the view corridor and access between the Harbour and Cathedral Park to deliver what council says will be "a world-class public space". A 'Stairway to Heaven' of steps has previously been floated as an idea.
Council initially engaged with Iris Capital, which is redeveloping Hunter Street Mall, about a joint proposal for the car park site - however an agreement couldn't be reached between the two parties.
Iris Capital is proceeding with their plans to develop stages 3 and 4 of their site and recently lodged a development application to demolish the remaining buildings on their East End site.