(Bloomberg) -- Swiss National Bank President Thomas Jordan warned of a possible drop in house prices as the market sees real estate in the country as overvalued.

“It will be very important to see what happens with rents,” he said during a panel discussion on Thursday in Zurich. “We would not be completely surprised if we see some reactions of prices.”

Jordan added that even though monetary tightening has driven up mortgage costs in Switzerland, the country still sees big demand for houses. His comments echo earlier concerns of too high real estate prices flagged by the SNB.

Switzerland’s national benchmark for mortgage costs is expected to show an uptick when it’s next published on Dec. 1, which could lead to widespread rent increases.

Asked about lessons from the Credit Suisse crisis, Jordan added during the panel discussion that even if a bank fulfills all requirements in terms of capital, that doesn’t necessarily mean it’s robust.

“In the future regulators need to take into account a bank’s ability to go to the market and get capital,” he said. “That might require a different kind of supervision.”

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