Tight Listings Challenge The Agency’s Growth Despite Strong Sales Gains
The Agency Group Australia has kicked off FY26 with a robust 26% year-on-year growth in Gross Commission Income and $2.3 billion in property sales, defying tight housing supply. The company is on track to surpass its $140.5 million GCI run-rate target, fueled by strong agent recruitment and expanding property management.
- 26% year-on-year growth in Gross Commission Income to $37.4 million
- $2.3 billion in property sales, up 31% from prior year
- 5% increase in agent numbers to 462 amid recruitment drive
- Property management portfolio grows 17% with 11,895 properties under management
- FY26 GCI run-rate target raised to $140.5 million with strong $15 million pipeline
Strong Start to FY26
The Agency Group Australia has reported a compelling start to the 2026 financial year, posting a 26% increase in Gross Commission Income (GCI) to $37.4 million for the September quarter. This growth accompanies a 31% surge in the gross value of properties sold, reaching $2.3 billion, underscoring the company’s ability to capitalize on a buoyant yet supply-constrained residential property market.
Despite a 9% decline in new listings nationally, The Agency’s transaction volume rose 10% to 1,788 properties sold, reflecting strong agent productivity and market share gains, particularly on the East Coast where sales jumped 24% year-on-year. Western Australia also contributed solidly with a 15% increase in property sales value, even as listings remain historically tight.
Agent Growth and Operational Expansion
The company’s agent network expanded by 5% to 462 agents, driven by targeted recruitment and retention efforts focused on high performers attracted to The Agency’s direct engagement model. New recruits generated $3.8 million of GCI in the quarter, nearly half of the year-on-year GCI growth, highlighting the success of this strategy.
Property management operations also showed notable progress, with a 17% increase in properties under management to 11,895. This growth was bolstered by a joint venture with MDC, particularly in service arrangements, which grew by 32%. This diversification adds stability to The Agency’s earnings base amid fluctuating sales markets.
Market Conditions and Outlook
The broader Australian residential property market remains resilient, with national dwelling values rising 2.2% in the quarter and total housing stock value approaching $12 trillion. The Agency benefits from this momentum, supported by improved buyer confidence and low listing volumes that maintain upward pressure on prices.
Management has raised the FY26 GCI run-rate target to $140.5 million, up from $137 million, backed by a strong pipeline of $15 million in annualised GCI from recent recruitments. Investments in lead-generation technology, brand marketing, and agent recruitment underpin confidence in reaching the next milestone of $150 million.
Executive Director Paul Niardone emphasized the company’s scalable model and strategic focus on expanding in growth markets like Victoria and Queensland, while maintaining cost discipline to convert revenue growth into profitability.
Bottom Line?
With a solid pipeline and strategic expansion underway, The Agency is poised to redefine its market footprint and profitability in FY26.
Questions in the middle?
- How will The Agency sustain growth amid ongoing tight housing supply?
- What impact will increased investment in technology and recruitment have on margins?
- Can The Agency maintain its competitive edge as market conditions evolve?