Real estate activities with own or leased property dominates the sector
Preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that the Real Estate Activities sector in the formal sector of the economy had a total of 592 establishments with total employment (TE) of 20 and over.
Between the two industries of the sector, real estate activities with own or leased property, led the sector. A total of 525 establishments (88.7%) in the industry were engaged in real estate activities with own or leased property. On the other hand, real estate activities on a fee or contract basis recorded 67 (11.3%) establishments. Figure 1 shows the percentage distribution of Real Estate Activities establishments with TE of 20 and over by industry group.
Across regions, most of the establishments for the sector were located in NCR with 410 or 69.3 percent of the total. CALABARZON and Central Visayas regions placed a far second and third with 37 establishments or 6.3 percent and 33 establishments or 5.6 percent, respectively.
Real estate activities with own or leased property employs more workers
The total employment for the sector reached 46,783 in 2015. A total of 46,437 employees or about 99.3 percent of the total workers were paid employees and 346 (0.7%) were working owners or unpaid workers.
Real estate activities with own or leased property employed bulk of the workers with 41,259 (88.2%) of the total. The remaining 5,524 workers (11.8%) were accounted by real estate activities on a fee or contract basis. Figure 2 shows the distribution of employment for the sector with TE of 20 and over by industry group.
At the regional level, the NCR recorded the biggest share in employment comprising 73.3 percent of the total workforce or 34,272 workers. Central Luzon followed with 3,383 workers (7.2%) and CALABARZON came in third with 2,568 workers (5.5%).
The average number of workers per establishment for the sector was recorded at 79. Real estate activities on a fee or contract basis reported an average number of 82, which surpassed the national average. Real estate with own or leased property recorded an average employment per establishment of 79 employees.
Real estate activities on a fee or contract basis pays the highest average annual compensation
In 2015, the sector paid a total compensation of PHP21.0 billion, equivalent to an average annual compensation of PHP452,998 per paid employee.
Among industries, real estate activities with own or leased property produced the biggest share amounting to PHP18.4 billion or 87.5 percent of the total compensation with an average annual compensation of PHP449,549 was paid for each. On the other hand, real estate activities on a fee or contract basis accounted the remaining 12.5 percent (PHP2.6 billion) to total compensation and paid the highest average annual compensation of PHP478,499 per employee. Figure 3 shows the average annual compensation of the sector by industry group in 2015.
Among regions, the NCR spent the biggest share in compensation amounting to PHP18.0 billion (85.6%). Central Luzon ranked second with PHP912.3 million (4.3%) and Central Visayas, third with PHP778.3 million (3.7%) while the rest of the regions paid 6.4 percent of the total compensation.
Workers in the NCR received the highest average annual compensation of PHP529,933 followed by Central Visayas with an average annual compensation of PHP357,335 per paid employee.
Real estate activities with own or leased property contributes the major share in income and expense
Total income generated by the sector reached PHP473.5 billion in 2015. Real estate activities with own or leased property contributed the major share (97.3%) amounting to PHP460.5 billion while real estate activities on a fee or contract basis accounted for a mere 2.7 percent share (PHP13.0 billion).
Total expense amounted to PHP311.3 billion in 2015. As the main contributor in income, real estate activities with own or leased property also had the bigger share in expense of PHP300.0 billion (96.3%) than real estate activities on a fee or contract basis with only PHP11.4 billion or 3.7 percent of the total. Figure 4 shows the income and expense for the sector by industry group.
Across the regions, NCR generated the highest income and expense amounting to PHP423.7 billion and PHP276.0 billion, respectively.
Income per peso expense is 1.52
In 2015, the income per peso expense for the sector stood at 1.52. Real estate activities with own or leased property recorded the highest and surpassed the national average with 1.54 income per peso expense. On the other hand, real estate activities on a fee or contract basis posted 1.14 income per peso expense.
Among regions, NCR reported the highest income per peso expense of 1.53.
Real estate activities with own or leased property generates the highest value added
Value added generated for establishments with TE of 20 and over of the sector totaled PHP188.0 billion in 2015. Real estate activities with own or leased property contributed higher value added of PHP182.8 billion or 97.2 percent share to total while real estate activities on a fee or contract basis accounted for 2.8 percent (PHP5.2 billion).
By region, NCR contributed the biggest share with PHP164.5 billion (87.5%), followed by Central Visayas and CALABARZON with value added of PHP7.5 billion (4.0%) and PHP6.4 billion (3.4%), respectively.
Real estate activities with own or leased property has higher labor productivity
Value added per total employment a measure of labor productivity, was estimated at PHP4.0 million. Real estate activities with own or leased property recorded the highest labor productivity of PHP4.4 million while real estate activities on a fee or contract basis attained a lower ratio of PHP946.1 thousand per worker. Figure 5 displays the labor productivity for the sector with TE of 20 and over by industry group in 2015.
NCR generates the highest labor productivity among regions at PHP4.8 million.
Gross addition to tangible fixed assets reaches PHP33.5 billion
Gross addition to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP33.5 billion in 2015. Almost all of the gross addition to tangible fixed assets was acquired by real estate activities with own or leased property with PHP32.5 billion or 97.1 percent of the total while real estate activities on a fee or contract basis recorded only PHP983.9 million (2.9%).
Among regions, NCR recorded the highest additions to fixed assets with PHP27.0 billion or 80.5 percent share of the total. Central Visayas followed far second with PHP2.9 billion or 8.6 percent of the total while the Bicol Region had the least share with PHP1.4 million.
Total change in inventory amounts to PHP38.6 billion
Total change in inventories (ending less beginning inventory) amounted to PHP38.6 billion in 2015. Both real estate activities with own or leased property and real estate activities on a fee or contract basis reported a positive value of change in inventories with PHP36.1 billion and PHP2.5 billion, respectively.
By region, NCR registered the highest change in inventories with PHP34.9 billion or 90.4 percent of the total, followed by CALABARZON with PHP3.2 billion (8.2%).
Subsidy totals to PHP27.9 million in 2015
Subsidies are grants received from the government in the form of financial assistance or tax exemption to aid and develop an industry. Total subsidies received from the government amounted to PHP27.9 million in 2015.
Only real estate activities with own or leased property located in NCR received subsidy from the government amounting to PHP27.9 million.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Real Estate Activities sector for establishments with total employment of 20 or more in the formal sector of the economy.
The 2015 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 the year 2015.
The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC)..
The conduct of the 2015 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 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- 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 and 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)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorship with branches
Hence, the 2015 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).
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2015 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 location.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial Classification of an economic unit was 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 of an establishment 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 refers to the 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, 2015 was used for the 2015 ASPBI.
Selection of sample establishment for the 2015 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.
For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.
Estimation Procedure 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 A,C,E,F,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 an industry domain in each region
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-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 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 (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
j = 1,2,3,..., mcp establishments
mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within 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 region (geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)
Response rate for Real estate activities sector for establishments with TE of 20 and over was 93.8 percent (244 out of 260 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 14 establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in or for the establishment as of November 15, 2015.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as 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 refers to 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.
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, royalty income 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 inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
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.