Investor appetite and activity have held up and there are signs of recovery on the horizon despite market volatility and economic uncertainty continuing to weigh on property markets throughout Asia Pacific in the second quarter. In Singapore, the commercial and industrial sectors were clear outperformers amid stringent ‘circuit breaker’ measures that slowed the pace of transactions. Meanwhile, in China, domestic investors are sticking to long-term strategies, with many scooping up property for self-use purposes. Emerging markets, including Myanmar and Vietnam, are continuing to attract inflows thanks to efforts to develop industrial infrastructure and the relocation of manufacturing from China. A return to relative normality in Hong Kong is supporting a strong undercurrent of buying sentiment, while in Japan the strength of the logistics and office markets helped offset a less positive picture in the retail and hotel sectors. Activity is likely to remain somewhat subdued in the coming months, but we expect it to gain momentum as investors act on the relative bargains set to emerge as markets bounce back.