Press review of early March

The news that marked this first half of March indicates a feeling of concern on the part of merchants caused by the hybrid work formula in downtown Montreal that is changing the habits of workers; the increase in interest rates by the Bank of Canada; the housing shortage in the regions, and the right of pre-emption of municipalities.

The housing shortage is being felt in some cities where organizations have been held to demand more affordable housing, notably in Trois-Rivières and Shawinigan as reported in Le Nouvelliste. This was part of a movement of nearly 500 organizations across the province calling on the government to adopt a comprehensive housing policy, as reported in Metro.

As predicted by many economists, and not too surprisingly, the Bank of Canada made its first increase in its key rate, from 0.25% to 0.50%. In an article from La Presse, it is reported that this first increase was already expected since the publication of the Bank of Canada's monetary policy report last January. Policy rate expected to reach 2% by year-end, says CBC. Note that the next Bank of Canada announcement is scheduled for April 13. In Le Soleil, we can read that this increase is not likely to calm the real estate market, because interest rates are still lower than in the pre-pandemic period. On the other hand, in the newspaper Les Affaires, we can read that several experts predict that there will very possibly be a retraction in the number of buyers on the market and a moderation of the overbidding phenomenon. Sales can be expected to pick up later in 2022 or 2023 when "baby boomers", who have been worried about the pandemic, want to put their properties up for sale and move into senior living or condominiums, it says.

The relaxation of certain health measures allows workers to consider a gradual return to the office. In an article in La Presse, it was noted that despite the end of mandatory telecommuting for workers, downtown Montreal must undergo a shock treatment to reinvigorate its economic vitality. Supported by the Chamber of Commerce of Metropolitan Montreal (CCMM), this project, which addresses the fear of a "spiral of devitalization", proposes a sort of mini Marshall Plan that will make workers' stays in the downtown area consist of mini business trips, according to an article in Les Affaires on the same subject. Thus, the president of the CCMM would like to see the implementation of a strategy to help the recovery of business projects such as large-scale events that attract foreigners, and to enhance the downtown experience through a management plan for construction sites and public transportation accessibility.

Following the City of Montreal's announcement of a new right of pre-emption in February, the Parti Québécois recently announced that it would give this right to all municipalities in the province. This legal right allows a municipality to become a priority buyer, as is currently the case in Montreal, to carry out projects deemed beneficial to the community, according to the press release issued by the PQ.

To see the sources mentioned in the text, please refer to the French version.