Jian Sun

Fort Hays State University, Kansas, United States

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Publications (6)2.91 Total impact

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    ABSTRACT: Although the average change in house prices is related to changes in fundamentals or perhaps market-wide bubbles, not all houses in a market appreciate at the same rate. The primary focus of our study is to investigate the reasons for these variations in price changes among houses within a market. We draw on three theories for guidance, one related to the optimal search strategy for sellers of atypical dwellings, another focusing on the bargaining process between a seller and potential buyers and the third relying on the concept of land leverage. We hypothesize that houses will appreciate at different rates depending on the characteristics of the property and the change in the strength of the housing market. These hypotheses are supported using data from three New Zealand housing markets.
    Real Estate Economics 05/2009; 37(2):259 - 278. · 1.02 Impact Factor
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    ABSTRACT: This paper presents the sale price appraisal ratio (SPAR) method for constructing house price indexes. The method, which uses ratios of transaction prices and previous appraised values, has been applied since the early 1960s to produce semiannual price indexes for regions and cities in New Zealand. We compare the official New Zealand indexes for three urban areas with repeat sales and hedonic indexes created from the same transactions data, and observe that the SPAR method produces an index very much like those produced by repeat sales methods. Given the number of advantages and few disadvantages that we find for the SPAR method relative to the more traditional methods, we maintain that it should be considered by government agencies elsewhere when developing house price indexes.
    Journal of Housing Economics. 11/2004;
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    ABSTRACT: The impact of views on property values has not been the specific focus of as much research as has the impact of other externalities on property values. When the impact of views is assessed, it is usually done by adding a single dummy variable to a hedonic regression equation. This paper provides a detailed literature review as well as an empirical analysis of the impact of a view on residential property values with a very rich database of nearly 5000 sales in Auckland, New Zealand. Several dimensions of a view are analyzed: type of view, scope of view, distance to coast, appearance of immediately surrounding improvements, average quality of landscaping in the neighborhood, and average quality of structures in the neighborhood. It is found that wide views of water add an average of 59% to the value of a waterfront property but that this effect diminishes quite rapidly as the distance from the coast increases. Attractive buildings in the neighborhood of a property on average add 37% to value relative to properties in neighborhoods with only average-quality structures. Particularly attractive improvements in the immediate surroundings of a property add another 27% to value on average. In contrast, properties in neighborhoods with only poor-quality landscaping on average experience a -51% impact on price. Our results lead to the conclusion that aesthetic externalities are multidimensional and can have a substantial impact on residential property values.
    Environment and Planning A 01/2004; 36(8):1427-1450. · 1.89 Impact Factor
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    ABSTRACT: The impact of views on property values has not been the specific focus of as much research as has the impact of other externalities on property values. When the impact of views is assessed, it is usually done by adding a single dummy variable to a hedonic regression equation. This paper provides a detailed literature review as well as an empirical analysis of the impact of a view on residential property values using a very rich database of nearly 5,000 sales in Auckland, New Zealand. Several dimensions of a view are analyzed: type of view, scope of view, distance to coast, appearance of immediately surrounding improvements, average quality of landscaping in the neighborhood, and average quality of structures in the neighborhood. It is found that wide views of water add an average of 59% to the value of a waterfront property, but that this effect diminishes quite rapidly as the distance from the coast increases. Attractive buildings in a property’s neighborhood on average add 37% to value relative to properties in neighborhoods with only average quality structures. Particularly attractive improvements in the immediate surroundings of a property add another 27% to value on average. On the other hand, properties in neighborhoods with only poor quality landscaping on average experience a -51% impact on price. Our results lead to the conclusion that aesthetic externalities are multi-dimensional and can have a substantial impact on residential property values.
    International Center for Financial Asset Management and Engineering, FAME Research Paper Series. 01/2003;
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    ABSTRACT: This paper explores the prices of three aesthetic externalities (the presence of a water view, the appearance of nearby improvements, and the quality of landscaping in the neighborhood) in residential property markets. In particular, we focus on how the implicit prices of such characteristics change with the residential real estate cycle. Given that the supply of these attributes is limited, one would expect their implicit prices to vary with the real estate cycle, contrary to what would be expected for the prices of property characteristics that are in relatively elastic supply. We also examine how the price premium for a water view varies across cities with the supply of such views. The empirical analyses are performed using hedonic models and a rich database of all residential sales transactions from 1986 to 1996 for the three largest urban areas in New Zealand—Auckland, Christchurch, and Wellington. Our results suggest that implicit prices of the aesthetic externalities move with the real estate cycle. We find also that the percentage premiums for water views are greatest in Christchurch, which has the smallest percentage of properties with water views, and lowest in Wellington, which has the highest percentage of properties with views. A good understanding of the impact of these variables is important for the valuation of residential properties.
    International Center for Financial Asset Management and Engineering, FAME Research Paper Series. 01/2003;
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    Jian Sun, Lin Ye
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    ABSTRACT: Mega-events such as the World Cup and the Olympics have been used for economic development, urban transformation and global status enhancement. Beijing and Shanghai embraced these purposes when they won the bids for the 2008 Olympics and the 2010 World Expo respectively. This article examines the pre-event economic changes in Beijing and Shanghai that are associated with their pursuit of mega-events. Changes in a group of economic indicators are tracked from 1997 to 2006. It was found that after winning the bids for the Olympics and the World Expo, Beijing and Shanghai experienced greater growth in construction and tourism, a speeding-up in economic development and restructuring, and an improvement in physical infrastructure. However, the enhancement of global exposure was not accompanied by growth in foreign trade and in the finance, insurance and real estate (FIRE) industries. The empirical analyses place the mega-events in large economic contexts and provide a base for future post-event studies.
    Journal of Current Chinese Affairs.