2016 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities Sector For All Establishments: Final Results

Reference Number: 

2019-008

Release Date: 

Saturday, January 19, 2019

Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings industry dominates the sector in terms of number of establishments

The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 5,065 establishments in the formal sector of the economy were engaged in real estate activities.

Among industries, real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings outnumbered other industries with 2,386 establishments or 47.1 percent of the total for the sector. Real estate buying, developing, subdividing and selling followed with 1,330 establishments or 26.3 percent. Additionally, real estate activities on a fee or contract basis ranked third with 645 establishments or 12.7 percent.

Figure 1 presents the percentage distribution of all establishments for the sector by industry sub-class in 2016.

Figure 1

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

In 2016, the total employment for the sector reached 81,728 workers. About 99.8 percent of the total employment or 81,581 workers were paid employees and the rest were working owners or unpaid workers.

Industry-wide, majority of the workers were employed in real estate buying, developing, subdividing and selling with 39,255 workers (48.0%). Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings and real estate activities on a fee or contract basis followed with 24,980 employees (30.6%) and 8,225 employees (10.1%), respectively.

Figure 2 shows the distribution of employment for all establishments of the sector by industry sub-class in 2016.

Figure 2

The average number of workers per establishment for the sector was recorded at 16.

Real estate buying, developing, subdividing and selling recorded the highest average number of workers per establishment of 30. Both real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings and renting or leasing services of residential properties had the least average with only 10 workers per establishment each.

Total compensation reaches PHP27.1 billion

For the year, the sector paid a total compensation amounting to PHP27.1 billion, translating to an average annual compensation of PHP331.8 thousand per paid employee.

Employees in real estate buying, developing, subdividing and selling received the highest average annual compensation of PHP385.6 thousand per paid employee.

Other industries which paid more than PHP250,000 average annual compensation to its employees in 2016 were as follows:

  • Real estate activities on a fee or contract basis, PHP344,884 per paid employee;
  • Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings, PHP284,694 per paid employee; and
  • Other real estate activities with own or leased property, PHP284,170 per paid employee.

Figure 3 displays the average annual compensation of paid employees for all establishments of the sector by industry sub-class in 2016.

Figure 3

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

In 2016, the sector generated a total income of PHP577.7 billion.

Real estate buying, developing, subdividing and selling shared more than half to the total income, amounting to PHP396.2 billion or 68.6 percent. The remaining income (31.4%) of the sector was contributed by the following industries:

  • Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings, PHP136.9 billion (23.7%);
  • Real estate activities on fee or contract basis, PHP19.7 billion (3.4%);
  • Cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium (including burial crypt), PHP8.8 billion (1.5%);
  • Renting or leasing services of residential properties, PHP8.2 billion (1.4%); and
  • Other real estate activities with own or leased property, PHP7.8 billion (1.3%)

On the other hand, total expense incurred by the sector amounted to PHP377.1 billion. Related to this, real estate buying, developing, subdividing and selling was also the major contributor in total expense, amounting to PHP258.5 billion or 68.6 percent. Other industries which spent more than PHP10.0 billion were the following:

  • Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings, PHP88.2 billion or 23.4%; and
  • Real estate activities on a fee or contract basis, PHP14.1 billion or 3.8%

Figure 4 shows the income and expense for all establishments of the sector by industry sub-class in 2016.

Figure 4

Income per peso expense stands at 1.53

The income per peso expense generated by the sector stood at 1.53 in 2016. This means that for every peso spent, a corresponding income of PHP1.53 was generated.

By industries, renting or leasing services of residential properties recorded the highest income per peso expense of 1.87. This was followed by other real estate activities with own or leased property with an income per peso expense of 1.59.

Conversely, cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium (including burial crypt) posted the lowest income per peso expense ratio of 1.28.

Value added totals to PHP240.3 billion

Value added generated by the sector was estimated at PHP240.3 billion. Real estate buying, developing, subdividing and selling contributed the highest value added of PHP166.3 billion or 69.2 percent of the total. Other real estate activities with own or leased property accounted for 0.4 percent or PHP993.0 million worth of value added, the lowest among industries.

Most productive workers are from real estate buying, developing, subdividing and selling industry

Value added per total employment, a measure of labor productivity for the sector was PHP2.9 million per worker. Real estate buying, developing, subdividing and selling generated the highest labor productivity of PHP4.2 million per worker. However, cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium (including burial crypt) recorded the lowest labor productivity of PHP654.0 thousand per worker.

Figure 5 displays the labor productivity for all establishments of the sector by industry sub-class in 2016.

Figure 5

Gross additions to tangible fixed assets sums up to PHP64.2 billion

The sector acquired a total of PHP64.2 billion gross additions to tangible fixed assets (capital expenditures less sale of tangible fixed assets) in 2016.

Majority or 93.4 percent of the total gross additions to tangible fixed assets were acquired by real estate buying, developing, subdividing and selling, amounting to PHP60.0 billion. Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings and real estate activities on a fee or contract basis placed second and third with PHP3.2 billion (5.0%) and PHP820.9 million (1.3%) gross additions to tangible fixed assets, respectively.

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

Total change in inventories (ending less beginning inventory) amounted to PHP25.8 billion in 2016.

Among industries, real estate buying, developing, subdividing and selling reported the highest change in inventories which amounts to PHP22.2 billion (85.9%). In addition, two other industries recorded positive value of change in inventories, namely:

  • Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings, PHP3.7 billion; and
  • Cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/columbarium (including burial crypt), PHP387.4 million.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for all Real Estate Activities establishments (sector L).

The ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2016.

The survey was conducted nationwide in 2017 with 2016 as the reference period, except for employment data which is 15 November 2016.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey questionnaires in the provinces as well as the online accomplishment of questionnaires through the PSA website.

Data are presented by industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

Legal Authority

The conduct of the 2016 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2016 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 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6%) of the total establishments belong to the formal sector of which 255,403 (86.7%) 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 2016 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.

Taxonomy 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 PSA Resolution No. 1 Series 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its TE as of specific date. 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 31 December 2016 was used for the 2016 ASPBI.

Sampling Design

The 2016 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.

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 is

Formula 1

where:

      s = denotes the non-certainty employment strata in TE of less than 20            

   Xsj = value of the jth establishment in the 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 in TE of less than 20 in sth industry domain

 

Formula 2

 

   Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in 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 (Xc ) for the certainty employment stratum in the Cth industry domain is

Formula 3

where:

       c = 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 obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain. That is,

 Formula 4

where d denotes the industry domain.

 

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)

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 

Formula 5

 

where:

      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 with 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 with TE of 20 and over for an industry domain in each region                                                                                                                                                                                      

Formula 6

   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 for an industry domain in each region

 

b.  Certainty Stratum (Establishments under the following: Section B and D, ICT core industries except J61902, Business Process Management (BPM) industries, Government Owned and Controlled Corporations (GOCCs) 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

Formula 7

where:

       c = denotes the certainty employment strata in TE of 20 and over        

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

   Xcpj = 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,..., 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,

 Formula 8

where d denotes the industry domains and p refers to region

National level estimate of 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, defined as N/n, was recomputed as

Formula 9

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

Formula 10

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)

 

Response Rate

Response rate for all sample establishments under Real Estate Activities sector was 83.0 percent (307 out of 370 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 13 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available 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 2016.

Limitation of Data

The survey covers only the formal sector of the economy.

Concepts and Definitions of Terms

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

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 for the establishment as of 15 November 2016.

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.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

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 input. Gross output for Real Estate Activities sector is the sum of the total income (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 inventories. Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.

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

See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.

 

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