RESIDENTIAL property prices will not rebound until the second quarter of next year due to the large proportion of new units still in developers' hands, DBS Securities says. A team of DBS analysts said that despite buyers' recent enthusiasm to new sales, price rises would be suppressed even after having bottomed out. Assistant research manager Winnie Chiu said prices for small and medium residential units could rise from the present average of $4,250 per square foot to $5,000 per sq ft by mid-1996. 'The supply of residential units is about 25,000 this year,' she said. 'Taking into account those sold in pre-sale, about 13,000 and 16,000 units have been sold this year. 'That means there are about 10,000 units in backlog.' With average monthly sales of 2,700 units, the backlog would be cleared only by February, Ms Chiu said. She believed removal of the mortgage ceiling would not be possible in the near term because this would provoke speculation. Ms Chiu said the firm would not upgrade earning forecasts for property companies until prices rose.