Despite Australia being on the borderline of a recession which has prompted regular interest rate cuts, The Agency Group (ASX: AU1) has reported record commissions for their real estate business, achieving $5.4m in October – a 54% lift on the $3.5m in the month prior.
In October alone, The Agency Group sold $345m worth of property comprising of $241m from the East Coast residential and $104m from Western Australia from their team of 271 sales agents nationwide which handled 445 listings for the month.
“These record-breaking results for October further validate that our model is setting the benchmark in real estate nationally and further proof we have the best model, the best talent and best growth proposition,” said The Agency Group Managing Director, Paul Niardone.
“With the rebound in Sydney and Melbourne property markets well underway, our future is looking exceptionally bright and we will continue to grow much to the frustration of our competitors.”
October figures did not include fees associated with the $20m rental portfolio acquired last month from Aspen Group (ASX: APZ).
Since listing on the ASX in 2017, The Agency Group has continued to disrupt traditional real estate agency models where it offers sales agents with overhead support and corporate benefits. By centralising many of their agent support services out of their national head office, the Group have just 10 physical locations around the country, enabling lower vendor expenses and greater commissions to sales agents.
Shares in AU1 rose to an intra-day high of $0.07 after the Group reported record commissions for the month of October, a rise of 15% on their previous day’s close of $0.061.