10 to 12 percent house price drop is still likely: CBA's Matt Comyn

10 to 12 percent house price drop is still likely: CBA's Matt Comyn
10 to 12 percent house price drop is still likely: CBA's Matt Comyn

The Commonwealth Bank chief executive Matt Comyn has signalled the country's biggest lenders is still assuming there will be a drop in house prices of up to 12 per cent.

It is premised on rising unemployment, under-employment and a slower economic recovery.

The forecast is dated back to May when its worse case scenario were falls up to 32 percent.

This week Comyn said the property market had so far been more resilient than it expected a few months ago, with prices only drifting slightly lower.

He noted falling rents had put pressure on house prices especially in inner-city suburbs.

"I think a reduction ... in the order of 10 to 12 per cent is still a reasonable assumption," said Comyn.

"We do have an expectation that in some areas, particularly in inner-city areas, there has been downward pressure on rental yields, so we think that that’s going to weigh on house prices."

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Cba Matt Comyn

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