Vol. 84 (2024)
Original Articles - Urban, Land, Environmental Appraisal and Economics

Influence of a traditional flea market on property prices in its surroundings – a case study in Porto Alegre, Brazil

PDF
  • Marco Aurelio Stumpf Gonzalez
Marco Aurelio Stumpf Gonzalez
Polytechnic School, Universidade do Vale do Rio dos Sinos, São Leopoldo
DOI: https://doi.org/10.36253/aestim-15481

Published 2024-08-04

Keywords

  • Flea market,
  • property prices,
  • hedonic models,
  • Brique da Redenção

Copyright (c) 2024 MARCO AURELIO STUMPF GONZALEZ

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Funding data

Crossref
Scopus
Google Scholar
Europe PMC

Abstract

Flea markets are important as economic and cultural phenomenon in several cities around the world. There is little attention to their influence on real estate prices. The “Brique da Redenção” occur every weekend since 1978 in Porto Alegre, Brazil. There could be positive effects on surrounding properties. However, the positioning of this flea market implies on reduce the accessibility on weekends to properties placed in the same street and it could reduce property prices. The aim of this paper is to evaluate the influence of this flea market in residential prices. It was developed hedonic models to explore these effects, with a sample of more than 5.3 thousand apartment sales. The analysis shows a satisfactory statistical performance of the hedonic model. The study indicates that Brique’ effect is capitalized in the market prices, with an average loss on value around to 7.8% to properties placed in front to the Brique.

PDF

Metrics

Metrics Loading ...

References

  1. Abrahão, M. H. M. B. (1997a). Brique da Redenção: trabalho, educação, subjetividade e saúde em modo não-formal de produção e comercialização de bens. Porto Alegre, PUCRS. Available at: https://books.google.com.br/books/about/Brique_da_Redenção_trabalho_educação.html (accessed 24 June 2024).
  2. Abrahão, M. H. M. B. (1997b). Conhecendo o Brique da Redenção. In Abrahão, M. H. M. B. (Ed.). Brique da Redenção: trabalho, educação, subjetividade e saúde em modo não-formal de produção e comercialização de bens (pp. 15–41). Porto Alegre, PUCRS.
  3. Agarwal, S., Chen, Y., Li, J., & Tan, Y. J. (2021). Hedonic Price of housing space. Real Estate Economics, 49(2), 574–609. https://doi.org/10.1111/1540-6229.12298
  4. Alhazmi, H. (2013). Shopping malls and spatial interactions of people in Saudi Arabia. Master’s thesis, University of Cincinnati. Available at: https://rave.ohiolink.edu/etdc/view?acc_num=ucin1377871423 (accessed 24 June 2024).
  5. Ball, M. J. (1973). Recent empirical work on the determinants of relative house prices. Urban Studies, 10(2), 213–233. https://doi.org/10.1080/00420987320080311
  6. Beracha, E., & Hardin, W. G. (2021). The housing price premium associated with charter schools. Real Estate Economics, 49(4), 1267–1289. https://doi.org/10.1111/1540-6229.12306
  7. Boyle, M., & Kiel, K. (2001). A survey of house price hedonic studies of the impact of environmental externalities. Journal of Real Estate Literature, 9(2), 117–144. https://doi.org/10.1080/10835547.2001.12090098
  8. Breunig, R., Hasan, S., & Whiteoak, K. (2019). Value of playgrounds relative to green spaces: matching evidence from property prices in Australia. Landscape and Urban Planning, 190, 103608. https://doi.org/10.1016/j.landurbplan.2019.103608
  9. Caccia, L. S. (2011). A apropriação do espaço público a partir do estudo das representações sociais no Parque da Redenção em Porto Alegre/RS. Universidade Federal do Rio Grande do Sul. Instituto de Geociências. Bachelor in Geography, Porto Alegre, Brazil. Available at: http://www.lume.ufrgs.br/handle/10183/55748 (accessed 24 June 2024).
  10. Caceres, B. C., & Geoghegan, J. (2017). Effects of new grocery store development on inner-city neighborhood residential prices. Agricultural and Resource Economics Review, 46(01), 87–102. https://doi.org/10.1017/age.2016.29
  11. Cardoni, J. S. (2017). “A natureza ensina”: uma etnografia sobre modos de fazer mercado na Feira de Agricultores Ecologistas. Universidade Federal do Rio Grande do Sul. Instituto de Filosofia e Ciências Humanas. Programa de Pós-Graduação em Antropologia Social. Master’ thesis, Porto Alegre, Brazil. Available at: https://www.lume.ufrgs.br/handle/10183/168993 (accessed 24 June 2024).
  12. Clark, S., Hood, N., & Birkin, M. (2021). A hedonic model of the association between grocery brand provision and residential rental prices in England. International Journal of Housing Markets and Analysis, 14(4), 680–700. https://doi.org/10.1108/IJHMA-05-2020-0062
  13. Clough Marinaro, I. (2019). Kaleidoscopic shades of grey: the shifting (in)formalities of Rome’s street markets. Cities, 95, 102413. https://doi.org/10.1016/j.cities.2019.102413
  14. Daunfeldt, S., Mihaescu, O., Öner, Ö., & Rudholm, N. (2021). Retail and place attractiveness: the effects of big‐box entry on property values. Geographical Analysis, 53(3), 467–498. https://doi.org/10.1111/gean.12247
  15. Dehring, C., & Dunse, N. (2006). Housing density and the effect of proximity to public open space in Aberdeen, Scotland. Real Estate Economics, 34(4), 553–566.
  16. Des Rosiers, F., Lagana, A., Thériault, M., & Beaudoin, M. (1996). Shopping centres and house values: an empirical investigation. Journal of Property Valuation and Investment, 14(4), 41–62. https://doi.org/10.1108/14635789610153461
  17. Des Rosiers, F., Thériault, M., & Gagné, M. E. (2008). Retail store affiliation and prestige and their impact on shopping center rents - a case study. Québec, Université Laval. Available at: http://www.fsa.ulaval.ca/sirul/2008-013.pdf. (accessed 24 June 2024).
  18. Din, A., Hoesli, M., & Bender, A. (2001). Environmental variables and real estate prices. Urban Studies, 38(11), 1989–2000. https://doi.org/10.1080/00420980120080899
  19. Dokmeci, V., Keskin, B., & Kiroglu, G. (2002). Explaining interurban house price differences in Turkey. In European Real Estate Society (ERES) Conference 2002, June 4-7, Glasgow. ERES. Available at: http://econpapers.repec.org/paper/arzwpaper/eres2002_5f150.htm (accessed 24 June 2024).
  20. Ferreira, C., Marques, T., & Guerra, P. (2015). Feiras e mercados no Porto: velhos e novos formatos de atividade económica e animação urbana. GOT - Geography and Spatial Planning Journal, (8), 75–102. https://doi.org/10.17127/got/2015.8.005
  21. Francke, M., & Van de Minne, A. (2021). Modeling unobserved heterogeneity in hedonic price models. Real Estate Economics, 49(4), 1315–1339. https://doi.org/10.1111/1540-6229.12320
  22. Gravari-Barbas, M., & Jacquot, S. (2019). Mechanisms, actors and impacts of the touristification of a tourism periphery: the Saint-Ouen flea market, Paris. International Journal of Tourism Cities, 5(3), 370–391. https://doi.org/10.1108/IJTC-11-2018-0093
  23. Halvorsen, R., & Pollakowski, H. O. (1981). Choice of functional form for hedonic price equations. Journal of Urban Economics, 10(1), 37–49. https://doi.org/10.1016/0094-1190(81)90021-8
  24. Helbich, M., Brunauer, W., Vaz, E., & Nijkamp, P. (2014). Spatial heterogeneity in hedonic house price models: the case of Austria. Urban Studies, 51(2), 390–411. https://doi.org/10.1177/0042098013492234
  25. Hoover, F. A., Price, J. I., & Hopton, M. E. (2020). Examining the effects of green infrastructure on residential sales prices in Omaha, Nebraska. Urban Forestry & Urban Greening, 54, 126778. https://doi.org/10.1016/j.ufug.2020.126778
  26. Kryvobokov, M. (2007). What location attributes are the most important for market value? Property Management, 25(3), 257–286. https://doi.org/10.1108/02637470710753639
  27. Kuang, C. (2017). Does quality matter in local consumption amenities? An empirical investigation with Yelp. Journal of Urban Economics, 100, 1–18. https://doi.org/10.1016/j.jue.2017.02.006
  28. Lima, G. C. de. (2016). Levantamento do conhecimento dos frequentadores do Parque Farroupilha a respeito das espécies vegetais do parque. Universidade Federal do Rio Grande do Sul. Instituto de Biociências. Finishing work (Biology), Porto Alegre. Available at: http://www.lume.ufrgs.br/handle/10183/170288 (accessed 24 June 2024).
  29. Malysz, S. C. (2013). Sistemas de identidade visual como recurso para valorização de produtos artesanais do Brique da Redenção . Sistemas de identidade visual como recurso para valorização de produtos artesanais do Brique da Redenção . Universidade Federal do Rio Grande do Sul. Escola de Engenharia. Faculdade de Arquitetura. Master’ thesis (Design), Porto Alegre. Available at: http://www.lume.ufrgs.br/handle/10183/96331 (accessed 24 June 2024).
  30. Melo, M. I. O., & Dias, K. e S. (2014). Parque Farroupilha, a natureza na cidade: práticas de lazer e turismo cidadão. Revista de Turismo Contemporâneo, 2(1), 1–26. https://periodicos.ufrn.br/turismocontemporaneo/article/view/5472
  31. Morancho, A. B. (2003). A hedonic valuation of urban green areas. Landscape and Urban Planning, 66(1), 35–41. https://doi.org/10.1016/S0169-2046(03)00093-8
  32. Olavarrieta, S., Manzur, E., Hidalgo, P., & Farías, P. (2008). Un análisis a los atributos relevantes de los mercados de las pulgas para los compradores: evidencia desde América latina. Revista de Ciencias Sociales, 14(3), 468–478. https://doi.org/10.31876/rcs.v14i3.25412
  33. Oliveira, J. S. de, Cavendon, N. N., & Figueiredo, M. D. de. (2012). O artesanato na ótica de quem o produz: com a palavra os artesãos do Brique da Redenção em Porto Alegre. RIGS. Revista Interdisciplinas de Gestão Social, 1(3), 141–162. https://doi.org/http://dx.doi.org/10.9771/23172428rigs.v1i3.10056
  34. Panduro, T. E., & Veie, K. L. (2013). Classification and valuation of urban green spaces—A hedonic house price valuation. Landscape and Urban Planning, 120, 119–128. https://doi.org/10.1016/j.landurbplan.2013.08.009
  35. Peciar, P. L. R., & Isaia, L. (2005). Turismo cultural: um olhar sobre as manifestações de atratividades encontradas nas feiras populares do Brique da Redenção em Porto Alegre – RS, Brasil, e da feira da Praça Matriz em Montevidéu no Uruguai. RACE - Revista de Administração, Contabilidade e Economia, 79–96. https://unoesc.emnuvens.com.br/race/article/view/8725
  36. Pertile, K. (2014). Em pratos limpos: as comidas de rua no Brique da Redenção, em Porto Alegre/RS-Brasil, e possibilidades para o turismo. Universidade de Caxias do Sul (UCS). Master’ thesis (Tourism and Hospitality), Caxias do Sul. Available at: https://repositorio.ucs.br/handle/11338/746 (accessed 24 June 2024).
  37. Pimentel, M. R., Verdum, R., Caron, D., Rudzewicz, L., Appel, J. M. S., Linck, J. L., & Panitz, L. M. (2016). The fencing of a heritage: approaching a landscape from its controversies. In Proceedings of TCL2016 Conference “Tourism and cultural landscapes: towards a sustainable approach”, June 12-16, 2016, Budapest, Hungary (pp. 479–489). Foundation for Information Society. Available at: http://tcl.infota.org/proceedings/articles/51_a031_pimentel_-_verdum_-_caron_-_rudzewicz_-_appel_-_linck_-_panitz_-_the_fencing_of_a_heritage.pdf (accessed 24 June 2024).
  38. Pinho, R. B. de, & Rocha, E. (2020). Feira das pulgas na contemporaneidade: cartografia nas cidades de Buenos Aires, Montevidéu e Curitiba | Flea markets in contemporary: cartography in the cities of Buenos Aires, Montevidéu and Curitiba. Oculum Ensaios, 17, 1–21. https://doi.org/10.24220/2318-0919v17e2020a4370
  39. Pope, D. G., & Pope, J. C. (2015). When Walmart comes to town: always low housing prices? Always? Journal of Urban Economics, 87, 1–13. https://doi.org/10.1016/j.jue.2014.10.004
  40. Rosa, E. S. T. Da, & Rocha, A. L. C. da. (2004). De várzea a parque: estudo antropológico das diferentes formas de sociabilidade no espaço do parque da redenção. ILUMINURAS, 5(10), 1–17. https://doi.org/10.22456/1984-1191.9187
  41. Sander, H., Polasky, S., & Haight, R. G. (2010). The value of urban tree cover: a hedonic property price model in Ramsey and Dakota Counties, Minnesota, USA. Ecological Economics, 69(8), 1646–1656. https://doi.org/10.1016/j.ecolecon.2010.03.011
  42. Saphores, J. D. D., & Li, W. (2012). Estimating the value of urban green areas: a hedonic pricing analysis of the single family housing market in Los Angeles, CA. Landscape and Urban Planning, 104(3–4), 373–387. https://doi.org/10.1016/j.landurbplan.2011.11.012
  43. Schläpfer, F., Waltert, F., Segura, L., & Kienast, F. (2015). Valuation of landscape amenities: a hedonic pricing analysis of housing rents in urban, suburban and periurban Switzerland. Landscape and Urban Planning, 141, 24–40. https://doi.org/10.1016/j.landurbplan.2015.04.007
  44. Silveira, S. M. Da, & Rocha, A. L. C. da. (2007). Contribuição ao estudo dos espaços de consumo cultural na cidade de Porto Alegre: a identidade do Brique da Redenção. ILUMINURAS, 8(17), 1–34. https://doi.org/10.22456/1984-1191.9261
  45. Sirpal, R. (1994). Empirical modeling of the relative impacts of various sizes of shopping centers on the values of surrounding residential properties. Journal of Real Estate Research, 9(4), 487–505. https://doi.org/10.1080/10835547.1994.12090766
  46. Stigger, M. P., Melati, F., & Mazo, J. Z. (2010). Parque Farroupilha: memórias da constituição de um espaço de lazer em Porto Alegre, Rio Grande do Sul – Brasil. Journal of Physical Education, 21(1), 127–138. https://doi.org/10.4025/reveducfis.v21i1.7886
  47. Stillerman, J. (2015). Flea Markets. In The Wiley Blackwell Encyclopedia of Consumption and Consumer Studies (pp. 1–2). Oxford, UK, John Wiley & Sons. https://doi.org/10.1002/9781118989463.wbeccs121
  48. Várnai, I. (2018). Flea markets in the space – Typology and spatial characteristics of second-hand retail in Budapest. Hungarian Geographical Bulletin, 67(1), 75–90. https://doi.org/10.15201/hungeobull.67.1.6
  49. Waltert, F., & Schläpfer, F. (2010). Landscape amenities and local development: a review of migration, regional economic and hedonic pricing studies. Ecological Economics, 70(2), 141–152. https://doi.org/10.1016/j.ecolecon.2010.09.031
  50. Wu, L., & Rowe, P. G. (2022). Green space progress or paradox: identifying green space associated gentrification in Beijing. Landscape and Urban Planning, 219, 104321. https://doi.org/10.1016/j.landurbplan.2021.104321
  51. Xiao, Y., Hui, E. C. M., & Wen, H. (2019). Effects of floor level and landscape proximity on housing price: a hedonic analysis in Hangzhou, China. Habitat International, 87, 11–26. https://doi.org/10.1016/j.habitatint.2019.03.008
  52. Yuan, F., Wei, Y. D., & Wu, J. (2020). Amenity effects of urban facilities on housing prices in China: accessibility, scarcity, and urban spaces. Cities, 96, 102433. https://doi.org/10.1016/j.cities.2019.102433
  53. Zhang, S., Duijn, M., & Vlist, A. J. (2020). The external effects of inner‐city shopping centers: evidence from the Netherlands. Journal of Regional Science, 60(4), 583–611. https://doi.org/10.1111/jors.12473