2014 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities : Final Results

Reference Number: 

2017-033

Release Date: 

Monday, February 13, 2017

Real estate activities with own or leased property leads the sector

Final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 4,862 establishments in the formal sector of the economy were engaged in real estate activities. Majority (89.6%) or 4,358 establishments had a total employment (TE) of less than 20.  The remaining 504 establishments (10.4%) were with TE of 20 and over.

Real estate activities with own or leased property had the highest number of establishments with 4,240 establishments (87.2%) while the rest of the firms were involved in real estate activities on a fee or contract basis.  Figure 1 shows the percentage distribution for all real estate activities establishments by industry group in 2014.

 

Real estate activities with own or leased property employs the highest number of workers

The sector employed a total of 72,711 workers in 2014. About 72,120 workers (99.2%) of the total workers were paid employees and the 591 employees (0.8%) were working owners or unpaid workers. More than half or 44,319 workers (61.0%) of the total employees worked for establishment with TE of 20 and over and the remaining employees (28,392 or 39.0%) worked in establishments with TE of less than 20.

Real estate activities with own or leased property employed majority of the workers with 64,946 (89.3%) of the total. The remaining 7,765 workers (10.7%) were accounted for by real estate activities on a fee or contract basis. Figure 2 shows the employment distribution for the sector by industry group.

 

Total compensation reach to PHP21.9 billion

In 2014, the sector paid a total compensation of PHP21.9 billion, equivalent to an average annual compensation of PHP303.1 thousand per employee. For establishment with TE of 20 and over, the total compensation reached PHP15.8 billion (72.0%) amounting to an average annual compensation of PHP355.7 thousand (28.0%) per paid employee. On the other hand, establishments with TE less than 20 paid only PHP6.1 billion or PHP219.5 thousand per paid employee.

The bulk of the total compensation was paid by real estate activities with own or leased property sharing PHP19.5 billion (89.3%) and the remaining portion, amounting to PHP2.3 billion (10.7%), by real estate activities on a fee or contract basis.

Employees in real estate activities on a fee or contract basis receive higher compensation

Employees in real estate activities on a fee or contract basis received higher average annual compensation of PHP316.0 thousand per employee while those employed in real estate activities with own or leased property received PHP301.6 thousand. Figure 3 shows the average annual compensation per employee for real estate activities by industry group.

 

Real estate activities with own or leased property contributes the major share in income and expense

Total income generated by the sector reached PHP497.5 billion in 2014. About 79.0 percent of the gross income was contributed by establishments with TE of 20 and over amounting to PHP389.8 billion. Real estate activities with own or leased property contributed the major share (94.2%) amounting to PHP468.8 billion while real estate activities on a fee or contract basis accounted for a mere 5.8 percent share (PHP28.6 billion).

Total expense amounted to PHP316.3 billion in 2014. Being the major contributor in income, real estate activities with own or leased property also had the largest share in expense of PHP290.5 billion (91.9%) while real estate activities on a fee or contract basis spent PHP25.8 billion or 8.1 percent of the total. Figure 4 shows the industry group in income and expense.

 

Income per peso expense stands at 1.57 in 2014

In 2014, the income per peso expense for the sector stood at 1.57. Real estate activities with own or leased property recorded the highest and surpassed the national average with 1.61 income per peso expense. On the other hand, real estate activities on a fee or contract basis registered 1.11 income per peso expense.

Value added totals to PHP172.9 billion

Value added of the sector totaled PHP172.9 billion in 2014. For establishments with TE of 20 and over, value added was PHP148.8 billion and PHP24.1 billion value added for establishments with TE less than 20.

Real estate activities with own or leased property contributed higher value added at PHP168.3 billion or 97.3 percent share to total while real estate activities on a fee or contract basis accounted for 2.7 percent (PHP4.6 billion). Figure 5 shows the value added for real estate activities establishments by industry group.

 

Real estate activities with own or leased property has higher labor productivity

Value added per worker, a measure of labor productivity, was estimated at PHP2.4 million. Real estate activities with own or leased property recorded higher labor productivity at PHP2.6 million while real estate activities on a fee or contract basis attained a lower ratio of PHP591.3 thousand.

Gross additions to tangible fixed assets accumulates to PHP44.3 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP44.3 billion in 2014. Establishment with TE of 20 and over recorded PHP31.1billion while establishments with TE less than 20 reached PHP13.3 billion.

Almost all of the gross addition to tangible fixed assets was acquired by real estate activities with own or leased property with PHP44.3 billion or 99.9 percent of the total while real estate activities on a fee or contract basis recorded only PHP56.8 million or 0.1 percent.

Total change in inventory sum up to PHP32.4 billion

Total change in inventories (ending less beginning inventory) amounted to PHP32.4 billion in 2014. Change in inventories for establishments with TE 20 and over reached PHP34.6 billion. Both real estate activities with own or leased property and real estate activities on a fee or contract basis derived a positive value of change in inventories with PHP31.8 billion and PHP573.4 million, respectively.

Subsidy amounts to PHP724.1 million in 2014

Subsidies are grants received from the government in the form of financial assistance or tax exemption to aid and develop an industry. In 2014, subsidies received by all real estate establishments amounted to PHP724.1 million.

Both real estate activities on a fee or contract basis and real estate activities with own or leased property industry received subsidies from the government with PHP566.3 million and PHP157.8 million, respectively.

Sales from E-Commerce

E-Commerce refers to the selling of products or services over electronic systems. None of the establishments reported sales from e-commerce activities during the reference year.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Real Estate Activities sector for all establishments in the formal sector of the economy.

The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014.

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionaire and submission thru email.

Legal Authority

The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2014 ASPBI is a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector.  The following comprise the formal sector:  

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2014 ASPBI covered only the following economic units:

  • All establishments with total employment (TE) of 10 or more, and;
  • All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

The initial estimate of the 2014 LE shows that there are about 944,500 establishments in operation in the country for the year.  About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2014 ASPBI classified under the 2009 PSIC.

  • Agriculture, Forestry and Fishing (A)
  • Mining and Quarrying (B)
  • Manufacturing (C)
  • Electricity, Gas, Steam, and Air Conditioning Supply (D)
  • Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  • Construction (F)
  • Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
  • Transportation and Storage (H)
  • Accommodation and Food Service Activities (I)
  • Information and Communication (J)
  • Financial and Insurance Activities (K)
  • Real Estate Activities (L)
  • Professional, Scientific and Technical Activities (M)
  • Administrative and Support Service Activities (N)
  • Education (P)
  • Human Health and Social Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is the establishment.  An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Economic Organization (EO).  This refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO).  This refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment.  The following are the types of legal organization: 

Industrial Classification.  The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue.  The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size (SZ) of the Unit of Enumeration.  The size of economic unit is determined by its total employment (TE) as of specific date.  Total employment (TE) refers to the total number of persons who work in or for the establishment. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification is grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of December 31, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2014 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

  •    = denotes the non-certainty employment strata in TE of less than 20
  •  Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
  •       =  1,2,3..., ns establishments
  •  Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

  •  Ns  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
  •  ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

b. Certainty Stratum

    The total of a characteristic  for the certainty employment stratum in the Cth industry domain was

where:

  •    = denotes the certainty employment strata in TE of less than 20 in the cth industry
  •  xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
  •  j      = 1,2,3,..., mc establishments 
  •  mc  = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c. Total Estimate for TE of Less Than 20

    For all sections except B and C, national level estimates of the total of a characteristic  for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

a.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

  •  s     = denotes the non-certainty employment strata in TE 20 and over
  •  p     = 1,2,...,17 regions geographic domains
  •  xspj  = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region
  •  j         = 1,2,3..., nsp establishments
  •  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

  •  Nsp  = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
  •  nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b.   Certainty Stratum  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

where:

  •  c    = denotes the non-certainty employment strata in TE of 20 and over
  •  p    = 1,2,...17, regions (geographic domains)
  •  xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
  •      = 1,2,3..., mcp establishment  
  •  mcp number of establishments in the certainty strata in TE of 20 and over in an industry domain in each region

 

c.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry 

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

  •  Ns   = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
  •  n's   = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

where:

  •  Nsp  = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
  •  n'sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 

Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2014 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for Real Estate Activities sector was 90.6 percent (376 out of 415 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 20 establishments responded online.

 

Concepts and Definitions of Terms

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Total employment is the number of persons who worked in for the establishment as of November 15, 2014.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment.  Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay.  Excluded are silent or inactive business partners.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc.  Included are total basic pay, overtime pay and other benefits.

Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered.  Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

Cost refers to all expenses incurred during the year whether paid or payable.  Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Expense refers to cost incurred by the establishment during the year whether paid or payable.  This is treated on a consumed basis.  Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Value Added is gross output less intermediate cost. Computation of gross output for real estate activities varies per industry as presented below.  

Gross output (for Real estate activities with own or leased property) is equal to the sum of total revenue (less interest income, rent income from land, dividend income, royaltyincome and franchise income), capital expenditures of fixed assets produced on own account, and change in inventory of real estate for sale; less cost of real estate purchased for sale.  

Gross output (for Real estate activities on a fee or contract basis)  is equal to the sum of total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income) and capital expenditures of fixed assets produced on own account.

Intermediate cost  is equal to the sum of the following cost items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; cost of industrial services done by others; cost of non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental       protection expense; royalty fee; franchise fee and other cost; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale.

Gross addition to tangible fixed assets  is equal to capital expenditures less sale of fixed assets, including land.

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located.  Valuation is at current replacement cost in purchaser prices.  Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

  
  

 

Attachment: 

Tags: 

Industry: 

Real Estate, Renting and Business Activities

Industry 2009 PSIC: 

Real Estate Activities

Reference Period: 

2014