1/11/2016 Apartment under construction in Newstead

National Australia Bank’s quarterly residential survey predicts Brisbane apartment prices to fall 2.2 per cent his year and 1.8 per cent in 2018 amid oversupply concerns. Picture: Glenn Hunt

NAB chief economist Alan Oster said Brisbane was nearly four times overbuilt when it came to apartments — worse than any other capital city.

But Mr Oster said the oversupply concerns were restricted to the inner-city unit market.

He said the bank did not forecast “massive” falls in unit, or house, prices in Brisbane, and Brisbane house price growth in the near future would be solid.

“If you can get a two per cent increase in house prices after what we’ve seen recently, that’s not too bad,” he said.

Looking at the state more broadly, Mr Oster said house price growth in southeast Queensland had been strong, but the north of the state was struggling.

NAB describes Australia’s housing market as “entering a cooling phase” after “years of very strong growth”, “although evidence points to an orderly adjustment rather than a sharp deterioration”.

The bank expects Sydney and Melbourne to see solid, albeit slower, growth in prices, while Perth will remain very weak.