Investors have become more risk averse over the local property stocks, brushing off interest-rate cuts amid mounting challenges for the sector.

Residential property prices declined on a year-on-year basis for the first time in three years, data from the Bangko Sentral ng Pilipinas (BSP) show.

Property consultant Colliers Philippines estimates clearing the capital region’s residential inventory could take six years – five times longer than it took during pre-pandemic times. Adding to the gloom, the BSP reported that the number of loans for new housing units nationwide dropped again in the third quarter.