PHOTO: Sydney house price growth is set to be relatively modest over the next few years, new forecasts show. Photo: James Alcock

Brisbane is set for the biggest rise in house prices of any capital city over the next three years, with a 20 per cent jump likely, a new forecast predicts.

Sydney and Melbourne prices are set to bottom out and rise at a more modest pace, holding below their recent peaks over the same period, the BIS Oxford Economics Residential Property Prospects 2019 to 2022 report suggests.

Sentiment in the weakened housing market has been picking up after the May election, two successive interest rate cuts and the bank regulator’s move to allow home buyers who can get finance to borrow more money.

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