Brisbane house prices could rise up to 20 per cent over the next three years, the largest increase in national house prices for the period, according to BIS Oxford Economics.

The economic forecaster expects the increase in Brisbane’s median house price over the three years to June 2022, although it anticipates most of this growth to be recorded toward the end of this period.

A total rise of 6 per cent is forecast for Sydney’s median house price, and Melbourne could see 7 per cent for the three years to June 2022.

While the downturn in Australia’s residential market is “approaching bottom”, BIS Oxford Economic's latest Residential Property Prospects 2019 to 2022 report adds that any “meaningful recovery remains a way off”.

The latest forecast, follows on from Moody's Analytics last month which expects modest rising in Sydney and Melbourne markets in 2020, with the housing price downturn expected to trough in the third quarter of this year.

BIS expects greater challenges in the unit market in the coming years.

“With new apartment construction rising at a much greater rate than houses through the upturn in new dwelling supply, and investors fuelling most of this growth, the excess supply is expected to be more concentrated within the apartment sector rather than houses,” the report notes.

“House price growth across most markets is forecast to barely pass inflation over the next three years, although prices are expected to accelerate across most capital cities by 2021-2022 as the current downturn in supply hits home.”

Report author Angie Zigomanis says supply is running at record levels, with most state markets in oversupply, with some “at best” close to balance.

“The fall-off in purchaser demand is now translating to a decline in new dwelling commencements, which are expected to fall from their 2018/2019 peak to a low of 163,000 dwellings by 2020/21.

“This downturn in new supply will sow the seeds of the next cyclical upturn.”