Ray White Rural scores a record $1.4 billion in sales

Ray White Rural turned in a record financial year, notching up $1.4 billion in property sales, helped by commodity prices that sustained buyer interest.

The sales figures were up $75 million on the previous year.

The 23-year-old rural division of the Ray White Group said the drought in Queensland, where half of the agency's offices are based, could have hurt sales results, The Australian Financial Review reported.

Ray White posted $44.7 billion in sales for 2016-17 financial year.

The rural division also added more than 30 new franchises in the year to July.

"Our agents were able to capitalise on high commodity prices within the beef industry despite drought in Queensland,” Ray White Rural chief executive Stephen Nell said.

“In southern Australia, the market has boomed on the back of very favourable seasonal conditions, low interest rates and surging commodity prices, particularly red meat – lamb, mutton and beef.” 

The biggest deal was a $15 million purchase of Mount Isa property "Manners Creek”. Other major transactions included the $13.9 million sale of "Inverness" and the $13.5 million sale of "Northampton Downs", both at Blackall, while “Carmila Glen" in Carmila, Queensland, sold for $11.5 million.

In NSW, the major transaction was Kiagathur North in Condobolin for more than $13 million.

In July, valuation firm Herron Todd White had noted that the rural property market around in far north New South Wales remains strong across most categories.

In Victoria, "Leighburn", a 1200-hectare mixed farming operation near Geelong, changed hands for $9 million.

Ray White Rural signed on six new franchise agreements in Victoria, five in Queensland, three in Western Australia and one each in the Northern Territory and South Australia.

But it was NSW where the major expansion happened with 17 key markets including Wagga, Casino, Kempsey and Goulburn all securing new Ray White Rural franchises.