Construction of the massive Prével apartment project will not begin this fall, after La Caisse indefinitely suspended its investment in the development.

The decision delays the first phase of the proposed $1.2-billion Panama Project in Brossard, Que., a transit-oriented rental development near the Panama station of the Réseau express métropolitain (REM). Construction of the first 30-storey tower, containing 325 rental apartments, had been expected to begin within weeks.

The City of Brossard confirmed the delay after La Presse reported that the investment arm of the Quebec government had put its financial participation on hold indefinitely. Economic uncertainty, slowing housing demand and changing market conditions are believed to have contributed to the decision. The Canada Mortgage and Housing Corporation has forecast that housing starts in the Montreal region will gradually decline in the coming years because of slower population growth, high construction costs and a large supply of units already under construction.

The Panama Project calls for the construction of seven rental apartment towers. The city expects the development to deliver about 1,805 housing units initially, with the broader Panama district eventually accommodating approximately 12,000 homes. Brossard has described the area as its future downtown because of its proximity to the REM station.

“The proliferation of projects in the sector demonstrates its attractiveness and the sustained interest it generates among developers. Several initiatives are reaching important milestones. The City of Brossard is doing everything possible to accelerate projects,” the municipality said in a written statement, citing recent regulatory advances that could help move developments forward.

La Caisse told La Presse that it continues “to believe in the potential of this project, particularly because of the quality of its location.”

“We will evaluate the next steps in its development when market conditions are more favourable,” Jean-Charles Del Duchetto, a La Caisse spokesman, told La Presse.

Neither Prével nor development partner TGTA commented.

Jean-Philippe Meloche, a professor at the Université de Montréal’s School of Urban Planning and Landscape Architecture, told La Presse that the pause reflects demographic rather than economic uncertainty.

“We went from record population growth to decline in two or three years,” he told his interviewer. “It’s unprecedented, honestly. If I’m an investor in 2023, I’m definitely enthusiastic about housing construction. In 2026? I’m not so sure anymore.”

Meloche added that La Caisse is likely delaying construction until conditions improve.

“For me, they’re essentially buying time and want to see how things evolve, even if that means building a few years later,” he told La Presse. “Population growth could return just as quickly as it disappeared, technically.”