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Demolition work in Caerphilly town centre is “likely to begin in the new year” to make way for a “much-needed” new development.

The project, on the site of the town’s former indoor market in Pentrebane Street, will include housing and retail opportunities.

Caerphilly County Borough Council’s cabinet members met last week to discuss contracts for the site’s demolition, at a behind-closed-doors meeting.

The local authority has since confirmed it is working with housing association Linc Cymru to advance to the next stages of the project.

Work is “currently underway to prepare for the demolition of the existing dilapidated buildings on the site”, ahead of the construction of the “flagship redevelopment”.

Proposals for 73 apartments – a mix of social rent, market rent and sale – and seven new commercial units were approved previously.

“The redevelopment of Pentrebane Street is much needed,” said Cllr Jamie Pritchard, the council’s deputy leader and cabinet member for regeneration. “The project will bring a mix of commercial, retail and much needed affordable housing to the top end of the town, which badly requires positive change.”

Cllr Pritchard said the project “will take time to complete” and would involve “an element of disruption during the construction process”.

“This is inevitable with a new town centre development,” he added. “Traders will be kept informed throughout the programme and supported to ensure disruption is kept to a minimum.”

The Pentrebane Street project forms part of the wider Caerphilly 2035 masterplan, which also includes the Ffos Caerffili container-style market – which opened in the spring of 2024 – and proposals for a new bus and rail “interchange” to replace the town’s existing stations.

The Welsh Government’s heritage organisation, Cadw, is funding a £10 million revamp of the facilities at Caerphilly Castle, and the council has also secured planning permission for a new £33.6 million leisure centre off Van Road.

Described by its backers as a “bold and ambitious vision” for the future of the town, the wider project is aimed at drawing in more visitors.

But some have criticised elements of the plans, with questions over the suitability of the modern designs of the market and interchange in keeping with the town’s heritage.