Bumiputra-Commerce Bank Bhd (BCB), which sees the property market remaining bullish in the next two years, expects its property financing portfolio to increase to RM6bil this year from RM4bil last year.

Senior vice-president for retail sales and distribution, Sulaiman Mohd Tahir, said that the property sector had expanded steadily to 15% annually for the last three years.

''The take-up rate for products (property) is good and we expect it to be there for the next two years,'' he told a press conference in Kuala Lumpur on Tuesday. Property financing made up 80% of BCB’s retail portfolio and the balance 20% from personal loans, initial public offering and credit cards. Sulaiman said that fear of inflation might dampen consumer sentiment. However, the government should not increase interest rates because it might further dampen growth in the property sector, he said.

On the ringgit, Sulaiman said the peg was not a concern because there would still be demand for local housing, especially by foreigners within the Klang Valley.

Sulaiman said that the bank’s market share in terms of property financing currently stood at 12% and it hoped to maintain this.

''We hope to maintain our market share because the market is moving,'' he said, adding that innovative products would be launched soon.

Source : The Star  21/04/2005