Canberra’s suburb of Pearce is experiencing a notable transformation, with increasing property values and a shift in the demographic landscape. Over the past year, the median home value in Pearce rose by 2 percent to reach $1.1 million as of August 2025, according to data from Cotality. In contrast, the broader Australian Capital Territory (ACT) saw a more modest increase of 1.4 percent, with a median value of $872,900.
Long-time resident Michael Nuttall, who has lived in Pearce for 25 years, has witnessed this change firsthand. Originally surrounded by large houses on expansive blocks, Nuttall now sees a blend of townhouses, duplexes, and granny flats in his neighborhood. He noted that these developments have been well executed, reflecting a balance between effective zoning and development approvals. “When the fine line between effective zoning and development approval is walked, magic happens,” he remarked.
Gentrification Drives Demand
Pearce is undergoing a gentrification process at a pace that outstrips its neighboring suburbs. This trend is evident as families priced out of the more expensive O’Malley, where the median home price stands at approximately $2 million, are moving to Pearce. Real estate agent Jonathan Charles, the director of Independent Property Group, highlighted that Pearce’s sun-drenched aspect and reputable local schools are significant attractions for prospective buyers. “Pearce generally captures the full extent of the sun,” he explained, emphasizing the suburb’s favorable orientation.
As older residents sell their larger homes, young families are moving in, often opting to renovate or rebuild on available blocks. The rising costs of land and construction have led many families to purchase existing homes instead. Charles pointed out that while this trend is not unique to Pearce, the suburb’s prime location has enabled it to outperform similar areas in terms of property value growth.
Future Outlook for Pearce
The ongoing development of infrastructure is expected to further bolster property values in Pearce. Nuttall and fellow resident Doug Hodgson believe that improvements, such as an updated shopping center and playground, will enhance the suburb’s appeal. Notably, the adjacent suburb of Chifley has experienced a mere 0.9 percent increase in home values over the last year, reflecting a peak that occurred several years ago when new facilities were introduced. In contrast, Chifley’s values have dropped by more than 6 percent over the past three years as infrastructure projects have slowed.
Hodgson, a fellow long-time resident, expressed optimism about the future of Pearce. He noted, “This is a great place to live,” underscoring the community’s growing vibrancy. As Pearce continues to evolve, it is becoming increasingly clear that the suburb is not only adapting but thriving in the face of change.
With a blend of established residents and a new wave of families, Pearce stands out as a dynamic area in Canberra’s real estate landscape. As property values rise and the community expands, it will be interesting to see how this suburb further develops in the coming years.
