TABLE A Comparative Summary Statistics for Real Estate Establishments with Total Employment of 20 and Over: Philippines, 2017 and 2016
Real estate activities with own or leased property industry dominates the sector in terms of number of establishments
The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 519 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in real estate activities.This number represents a decrease of 11.1 percent for the year compared with the 584 establishments in 2016.
Between the two industry groups of the sector, real estate activities with own or leased property posted a higher number of establishments of 456 or 87.9 percent of the total. Real estate activities on a fee or contract basis, on the other hand, recorded 63 establishments or 12.1 percent.
Figure 1 shows the percentage distribution of real estate establishments with TE of 20 and over by industry group in 2017.
Across regions, majority of the establishments were located in the National Capital Region (NCR) with 357 establishments (68.8%). Central Visayas and Central Luzon placed second and third with 35 establishments (6.7%) and 34 establishments (6.6%), respectively. Ilocos Region, on the other hand, recorded the least number with only three establishments or 0.6 percent.
Real estate activities with own or leased property industry employs majority of the workers
In 2017, the total employment of the sector for establishments with TE of 20 and over was estimated at 52,421 workers, a 1.3 percent decline compared with the 53,128 workers in 2016.
Majority of the sector’s workers were paid employees numbering to 52,382 (99.9%) while the rest were working owners and unpaid workers.
By industry, real estate activities with own or leased property employed 47,007 workers or 89.7 percent of the total. The remaining 5,414 workers (10.3%) were engaged in real estate activities on a fee or contract basis.
Figure 2 shows the distribution of employment for establishments with TE of 20 and over of the sector by industry group in 2017.
At the regional level, NCR recorded the highest share to total employment, comprising almost three-fourths (38,576 workers or 73.6%) of the total workforce. Central Luzon followed with 4,616 workers (8.8%) and Central Visayas came third with 2,368 workers (4.5%). However, Zamboanga Peninsula registered the lowest in employment with 115 workers (0.2%).
The average number of workers for establishments with TE of 20 and over was registered at 101 per establishment in 2017. Real estate activities with own or leased property slightly surpassed the sector’s average with 103 workers per establishment. On the other hand, real estate activities on a fee or contract basis recorded an average of 86 workers per establishment.
Total compensation reaches PHP27.3 billion
In 2017, the sector paid a total compensation to its employees amounting to PHP27.3 billion, an increase of 29.1 percent from the reported PHP21.1 billion total compensation in 2016.
Real estate activities with own or leased property spent PHP24.4 billion (89.5%) for the compensation of its employees. The remaining portion of the total compensation worth PHP2.9 billion (10.5%) was paid by real estate activities on a fee or contract basis.
By region, NCR led other regions in terms of compensation paid to employees amounting to PHP23.7 billion (86.9%). Central Luzon and Central Visayas ranked second and third, paying PHP1,209.3 million (4.4%) and PHP929.8 million (3.4%), respectively. The lowest amount of compensation paid to employees was registered in Zamboanga Peninsula at PHP 11.0 million (0.04%).
The sector reported an average annual compensation of PHP520.4 thousand per paid employee in 2017. This indicates an increase of 30.9 percent from the previous year average annual compensation of PHP397.7 thousand per paid employee. Employees of real estate activities on a fee or contract basis received an average annual compensation of PHP529.2 thousand per paid employee, surpassing the sector’s average. Meanwhile, employees of real estate activities with own or leased property recorded an average annual compensation of PHP519.4 thousand per paid employee.
Figure 3 displays the average annual compensation of paid employees for establishments with TE of 20 and over of the sector by industry group in 2017.
Employees in NCR received the highest average annual compensation of PHP614.1 thousand per paid employee, while those employed in Zamboanga Peninsula were the lowest paid, receiving PHP95.7 thousand per paid employee.
Real estate activities with own or leased property industry contributes the highest share to income and expense
The total income generated by the sector for establishments with TE of 20 and over reached PHP628.0 billion in 2017, an increase of 28.4 percent from the PHP489.0 billion generated income in 2016.
Real estate activities with own or leased property contributed the major share to the total income amounting to PHP613.8 billion (97.7%), while real estate activities on a fee or contract basis generated an income of PHP14.2 billion (2.3%).
Total expense incurred by the sector amounted to PHP422.7 billion in 2017, up by 32.1 percent from the PHP320.0 billion reported expense in 2016. Being the main contributor in income, real estate activities with own or leased property was also the major contributor in expense with PHP412.1billion (97.5%). Real estate activities on a fee or contract basis spent PHP10.6 billion (2.5%).
NCR, being the center of economic activities in the country, generated the highest income and incurred the highest expense amounting to PHP579.7 billion (92.3%) and PHP387.3 billion (91.6%), respectively. Zamboanga Peninsula, on the other hand, had the least income of PHP159.1 million (0.03%) and least expense of PHP142.7 million (0.03%).
The income per peso expense generated by the sector for establishments with TE of 20 and over stood at 1.49 in 2017. This means that for every peso spent, a corresponding income of PHP1.49 was generated.
By industry, real estate activities with own or leased property recorded an income per peso expense of 1.49, which was the same as the national average. Conversely, real estate activities on a fee or contract basis posted an income per peso expense of 1.34.
At the regional level, Northern Mindanao reported the highest income per peso expense of 1.54. On the other hand, Cordillera Administrative Region (CAR) and Zamboanga Peninsula registered the lowest ratio of 1.12 each.
Value added reaches PHP288.0 billion
The total value added generated by the sector for establishments with TE of 20 and over amounted to PHP288.0 billion in 2017, an increase of 60.2 percent compared with the value in 2016 amounting to PHP179.7 billion. Real estate activities with own or leased property contributed a higher value added of PHP279.6 billion (97.1%) than the real estate activities on a fee or contract basis with PHP8.4 billion (2.9%) worth of value added.
By region, NCR recorded the highest value added of PHP264.2 billion or 91.8 percent of the total. Central Visayas and Central Luzon followed distantly with value added amounting to PHP7.5 billion and PHP6.3 billion, respectively.
Figure 4 shows the labor productivity for real estate establishments with TE of 20 and over by industry group in 2017.
Labor productivity, which is the ratio of value added to employment, was estimated at PHP5.5 million per worker in 2017, higher by 62.4 percent compared with the labor productivity of PHP3.4 million per worker in 2016. Real estate activities with own or leased property recorded a higher labor productivity of PHP5.9 million per worker than the real estate activities on a fee or contract basis with labor productivity of PHP1.6 million per worker.
ROSALINDA P. BAUTISTA
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Real Estate Activities sector for establishments with total employment of 20 and over.
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 in2017.
The survey was conducted nationwide in 2018 with 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.
Data are presented by industry group or 3-digit of the 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
The conduct of the 2017 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 2017 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 partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches
Hence, the 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 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 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 TE as of a 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 2017 was used for the 2017 ASPBI.
The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.
For establishments with TE of 20 and over, the 17 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) 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 20 to 49 and TE 50 to 99
p= 1, 2,...,17 regions (geographic domains)
xspj= value of the jth establishment in the non-certainty employment strata in TE 20 to 49 and TE 50 to 99for an industry domain in each region
j = 1, 2, 3,…,nsp establishments
Wspj = weight of the jthestablishment in the non-certainty employment strata in TE 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 20 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE 20 to 49 and TE 50 to 99 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B, D and J, ICT core industries, BPM industries, GOCCs, and with TE 20 and over)
The estimate of the total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region,
c = denotes the 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 for an industry domain within 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 (geographic domain) is obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
Where d denotes the industry domains and p refers to region.
National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates 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’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 20-99 for the industry domain within each geographic domain (region)
The response rate for Real Estate Activities sector for establishments with TE of 20 and over was 78.6 percent (206 out of 262 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 16 establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from Securities and Exchange Commission (SEC) and other available sources. Reports of establishments which were found to be duplicate of another establishment’s report, out-of-scope, and out of business in 2017 were not included in the generation of statistical tables.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
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.
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.
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.
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.
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.
Expense refers to the 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.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
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.
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.
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.
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.
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.
Total employment is the number of persons who worked in for the establishment as of 15 November 2017.
Value added is gross output less intermediate input. Gross output for Real Estate Activities sectoris the sum ofreal estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties,income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income,capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is 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.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.