2015 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities Sector For All Establishments: Final Results

Reference Number: 

2017-335

Release Date: 

Friday, December 29, 2017

Real estate activities of apartment buildings, non-residential and dwellings dominates the sector

Final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 4,826 establishments in the formal sector of the economy were engaged in Real Estate Activities.

Among industries, Real estate activities which involve buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings outnumbered other industries with 2,086 establishments or 43.2 percent. Real estate buying, developing, subdividing and selling followed with 1,455 establishments at 30.1 percent. Additionally, real estate activities on a fee or contract basis ranked third with 655 establishments or 13.6 percent. Figure 1 presents the percentage distribution of establishments for the sector by industry sub-class during 2015.

Real estate buying, developing, subdividing and selling employs the highest number of workers

In 2015, the total employment for the sector reached 74,300. About 98.4 percent of the total employment or 73,126 workers were paid employees and the remaining 1,174 (1.6%) were working owners or unpaid workers.

Industry-wide, majority of the workers were employed at real estate buying, developing, subdividing and selling with 35,087 employees (47.2%). Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings and real estate activities on a fee or contract basis followed with 23,803 employees (32.0%) and 9,299 employees (12.5%), respectively. Figure 2 shows the distribution of employment for the sector by industry sub-class.

Total compensation reaches PHP26.3 billion in 2015

For the year, the sector paid a total compensation amounting to PHP26.3 billion, equivalent to an average annual compensation of PHP358,999 per paid employee.

Real estate buying, developing, subdividing and selling paid the highest compensation amounting to PHP15.6 billion or 59.6 percent. Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwelling and real estate activities on a fee or contract basis came next as second and third with total compensation of PHP5.7 billion and PHP3.4 billion, respectively.

Moreover, employees in real estate buying, developing, subdividing and selling received the highest average annual compensation with PHP454.8 thousand per employee, surpassing the sector average of PHP359.0 thousand per employee. On the other hand, workers of real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings had the least average annual compensation with only PHP240.7 thousand per employee.

Figure 3 displays the average annual compensation for the sector by industry sub-class in 2015.

Real estate buying, developing, subdividing and selling contributes the major share in income and expense

The sector generated a total income of PHP534.5 billion. Real estate buying, developing, subdividing and selling shared more than half of the total income (58.3%) equivalent to PHP311.4 billion. Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwelling placed afar second with PHP183.6 billion (34.3%). Real estate activities on fee or contract basis earned the third highest income of PHP21.5 billion (4.0%).

Total expense incurred by the sector amounted to PHP353.2 billion in 2015. As the main contributor in income, real estate buying, developing, subdividing and selling also registered the biggest percentage of the total expense with PHP218.3 billion or 61.8 percent. Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwelling ranked second as well with PHP105.0 billion (29.7%); real estate activities on a fee or contract basis came in third with PHP18.1 billion (5.1%). Figure 4 shows the income and expense for the sector by industry sub-class.

Income per peso expense stands at 1.51

The income per peso expense produced by the sector stood at 1.51 in 2015. This means that for every peso spent, a corresponding income of PHP1.51 was generated.

By industries, other real estate activities with own or leased property recorded the highest and surpassed the national average with 2.08 income per peso expense, followed by real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings with 1.75.

Conversely, cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium posted the lowest ratio of 1.17.

Value added totals to PHP221.3 billion

Value added for the real estate activities was estimated at PHP221.3 billion. Real estate buying, developing, subdividing and selling provided the largest value added with PHP121.2 billion or 54.8 percent share while other real estate activities with own or leased property only accounted PHP1.5 billion or 0.7 percent.

Employees of real estate activities of apartment buildings, non-residential and dwellings are more productive

Value added per total employment, a measure of labor productivity, of the sector was at PHP3.0 million. Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings generated the highest labor productivity of PHP3.5 million, surpassing the national total. However, cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium recorded the lowest ratio of PHP635.6 thousand per worker. Figure 5 displays the labor productivity for the sector by industry sub-class in 2015.

Gross additions to tangible fixed assets sum up to PHP40.9 billion

The sector acquired an amount of PHP40.9 billion gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) in 2015.

Almost all of the gross addition to tangible fixed assets was acquired by real estate buying, developing, subdividing and selling with PHP29.3 billion or 71.6 percent. Real estate buying, selling, renting, leasing and operating of apartment buildings, non-residential and dwellings and real estate activities on a fee or contract basis came in as second and third with PHP10.3 billion (25.1%) and PHP1.1 billion (2.7%), respectively.

Real estate buying, developing, subdividing and selling posts the highest change in inventories

Total change in inventories (ending less beginning inventory) amounted to PHP38.2 billion in 2015.

Real estate buying, developing, subdividing and selling reported majority of the change in inventory with PHP36.3 billion (95.0%). In addition, two other industries obtained positive value, namely:

  • Real estate activities on a fee or contract basis, PHP2.6 billion; and
  • Other real estate activities with own or leased property, PHP664 thousand

Government provides PHP27.9 million worth of subsidies in 2015

Subsidies are grants received from the government in the form of financial assistance or tax exemption to aid and develop an industry. For 2015, the total subsidies received from the government by the sector amounted to PHP27.9 million and only real estate activities that involve buying, developing, subdividing and selling received subsidy.


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2015 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 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 year 2015. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

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.

Data are presented at the national and industry sub-class or 5-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-questionnaire and submission thru email..

Legal Authority

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 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 proprietorship with employment of 10 and over
  4. 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).

The initial estimate of the 2015 Listing of Establishments (LE) shows that there are about 909,786 establishments in operation in the country for the year. About 259,386 establishments (29% of total establishments) belong to the “Formal Sector” of which 223,821 (86.3%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2015 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 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)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages 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 (EO) 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 (LO) 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 (SZ) of the unit of 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.

Sampling Design

Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 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

 j      =  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 characteristicfor 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

  • 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 an industry domain in each region 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 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 with TE of 20 to 49 and TE 50 to 99 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

 

  • Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       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

Where:

 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)

 

Questionnaire 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 2013 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 2015 ASPBI were scheduled from April to July 2016.

Total response rate for Real Estate Activities sector was 87.4 percent (305 out of 349 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 15 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.

 

Concepts and Definitions of Terms

Establishment  is as 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, 2015.

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/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.

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, 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 additions 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.

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.

 

 


 

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