Asia-Pacific invested stock rose to $3.9 trillion in 2011, surpassing the level of invested stock in North America, according to the DTZ Money into Property 2012 Asia-Pacific Report released on Tuesday.
DTZ defines invested stock as a measure of investment-grade commercial real estate held by investors.
With that number, the Asia-Pacific has overtaken North America to become the second-largest region globally, growing by 13 percent in floating US dollar terms, followed by 8 percent in Europe and no growth in North America.
As Chinese stock growth slowed down in 2011, other smaller markets, such as Malaysia and Singapore, all grew more strongly, the report further explained.
Southeast Asia saw 16 percent added to the value of its invested stock in 2011, up from 8 percent growth in 2010 and no growth in 2009. The growth in this region was concentrated in Malaysia and Singapore.
"Despite an increase in invested stock, total transaction volumes in the Asia-Pacific in 2011 were on a par with 2010 levels. The Asia-Pacific remained the most actively traded volume, with an average liquidity ratio of 4 percent.
"Significantly, Singapore was the most liquid market globally, with a liquidity of 12 percent," said Hans Vrensen, global head of research at DTZ.
The report further said that a significant proportion of the transactional activity in the region's emerging markets comes from land sales. With this part excluded, the region's liquidity ratio more than halves to under 2 percent.
The impact in China is more dramatic. It becomes the least liquid market as its ratio falls from 7 percent to 1 percent.
"In the base case, Asia-Pacific invested stock is expected to continue its strong growth at 7 percent in 2012 and 10 percent in 2013.
"However, in the downside scenario, stock is projected to decline by 4 percent in 2012 but rebound with 6 percent growth in 2013," said Chor Hoon Chua, DTZ head of Asia-Pacific research.
"Investment volumes are projected to fall by about 9 percent in 2012 under the base case, as first-quarter volumes have been subdued as a result of continued caution.
"As we consider the downside, we forecast volumes down 35 percent," said Chua.
London-headquartered DTZ, now combined with UGL Services, is now one of the largest property services companies in the world.
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