The US was overtaken in 2009 as the world’s largest property investment market by China and it is expected to maintain that status during 2010 due to economic growth and a lower reliance on debt, according to Cushman and Wakefield.

Real estate investment in China more than doubled to $156.2bn in 2009, while the total for the US slumped by -64% to $38.3bn. Excluding residential investments, the US came third after China and the UK.

The Chinese economy grew at an annual rate of +10.7% in Q4 2009 and was boosted by Premier Wen Jiabao’s $586bn stimulus package, whilst the US property market is being damaged by the high levels of unpaid debt and a reluctance among banks to lend as they clean up their balance sheets, the report points out.

The report also highlighted that in 2009, of the world’s 20 largest property markets, eight were located in the Asia Pacific region, with Hong Kong, Taiwan and New Zealand registering gains in investment.

China has taken steps to slow down the real estate market as price increases accelerate, with the Government re-imposing a sales tax in January 2010 on homes sold within five years of their purchase.