The valuer, Steve Flannery, appeared on Wednesday at a Legislative Assembly committee inquiry looking into a number of acquisitions of rural land by the agency between June 2014 and July 2017.

A 2018 audit report found the now defunct agency initially wanted to purchase a rural property called Fairvale to the west of Canberra, but later supported its subdivision so Mr Flannery could purchase part of the property.

The agency's own planning documents showed the block secured by Mr Flannery, partner of Knight Frank Valuations, was strategically important to the government for its future development plans.

The audit could not determine why the agency agreed to subdivide the property to facilitate Mr Flannery's purchase and thereby forego the opportunity to purchase the whole block.

It also found the zoning of the block the agency ended up purchasing may make it less suitable for development, compared to Mr Flannery's land.

The committee is investigating who decided to subdivide the Fairvale rural property and why as it continues examining an audit into rural land purchases made by the now defunct agency.

Mr Flannery told the hearing he was upfront and honest about his personal interest in the property with his client and the agency.

He was initially engaged as a valuer of the Fairvale land by the vendor and soon after indicated to her he was interested in her property.

He said he could not afford to buy the whole block himself but believed the agency might have been interested.

He offered to approach the agency to see if it would buy the remainder, the inquiry heard.

Mr Flannery, who now farms the property, eventually bought the land for $2.4 million and the agency acquired the remainder.

The government had a plan to acquire land in the western part of Canberra for future land development.

This prompted questions as to why the government would facilitate the sale of part of the land to someone else.

Mr Flannery said the land he bought had significant improvements made to it, which the agency was not interested in.

"It was still quite a large tract of land that they were going to acquire," he said.

Mr Flannery, who often provided valuation advice to the agency, denied having previously had conversations with the agency or ministers about rural leases.

"No, I was simply a contractor who was doing a job, a valuation job," he said.

"I know that they have strategies and policies and things they go about doing but I'm not privy to that."

Mr Flannery said he was as open and honest as he could have been during the three way negotiations.

"It was all in the spirit of open transaction, because I didn't need anyone coming back at us later about the whole transaction," he said.

Mr Flannery said he was "irked" by the use of the words transparency and probity around the deal in the media.

"I pride myself on being very diligent and I don't see that I'm a risk," he said.