Real estate activities with own or leased property industry dominates the sector in terms of number of establishments
Preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 585 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Real Estate Activities.
Between the two industry groups of the sector, real estate activities with own or leased property posted the higher number of establishments with 513 or 87.7 percent of the total number of establishments for the sector. Figure 1 shows the percentage distribution of real estate activities establishments with TE of 20 and over by industry group in 2016.
Across regions, majority of the establishments were located in the National Capital Region (NCR) with 402 establishments or 68.7 percent of the total. Central Visayas and Central Luzon regions placed a far second and third with 37 establishments (6.3%) and 35 establishments (6.0%), respectively. Ilocos Region, Rest of Luzon, Zamboanga Peninsula and Rest of Mindanao areas recorded the least number of establishments with three establishments or 0.5 percent each.
Real estate activities with own or leased property industry employs majority of the workers
In 2016, the total employment of the sector for establishments with TE of 20 and over reached 52,744 workers. Out of this number, 52,694 or 99.9 percent were paid workers while the rest were working owners or unpaid workers.
Industry-wide, real estate activities with own or leased property recorded the higher number of workers with 46,167 (87.5%). The remaining 6,577 workers (12.5%) were engaged in real estate activities on a fee or contract basis. Figure 2 shows the distribution of employment of the sector for establishments with TE of 20 and over by industry group in 2016.
At the regional level, NCR recorded the biggest share in employment comprising almost three-fourths (38,472 workers or 72.9%) of the total workforce. Central Luzon followed with 4,236 workers (8.0%) and Central Visayas came in third with 2,797 workers (5.3%). The Rest of Luzon area registered the lowest employment with only 98 workers (0.2%).
The average number of workers per establishment for the sector was recorded at 90. Similarly, real estate activities with own or leased property registered the same level as the national average. On the other hand, real estate activities on a fee or contract basis slightly surpassed the sector’s average with 91 workers per establishment.
Total compensation reaches PHP21.1 billion
In 2016, the sector paid a total compensation amounting to PHP21.1 billion, equivalent to an average annual compensation of PHP400.8 thousand per employee.
Real estate activities with own or leased property paid the higher compensation amounting to PHP18.6 billion or 88.0 percent. The remaining portion of the total compensation worth PHP2.5 billion or 12.0 percent was incurred by real estate activities on a fee or contract basis.
Among the regions, NCR contributed the biggest share in compensation amounting to PHP17.5 billion (82.8%). Central Luzon ranked second with PHP1.1 billion (5.3%) and Central Visayas placed third with PHP1.1 billion (5.2%). The Rest of Luzon paid the lowest compensation of PHP 8.7 million (0.04%).
Moreover, real estate activities with own or leased property received the higher average annual compensation of PHP402.8 thousand per employee, surpassing the sector’s average level. Meanwhile, workers of real estate activities on a fee or contract basis recorded an average annual compensation of PHP386.6 thousand per employee.
Figure 3 displays the average annual compensation of employees of the sector for establishments with TE of 20 and over by industry group in 2016.
Workers in NCR received the highest average annual compensation of PHP455.4 thousand per employee while those employed in the Rest of Mindanao area received the lowest average annual compensation of PHP80.0 thousand per employee.
Real estate activities with own or leased property industry contributes the major share in income and expense
Total income generated by the sector for establishments with TE of 20 and over reached PHP489.4 billion in 2016.
Real estate activities with own or leased property contributed the major share to the total income amounting to PHP475.9 billion (97.2%) while real estate activities on a fee or contract basis only generated PHP13.5 billion (2.8%).
Total expense incurred by the sector amounted to PHP320.0 billion in 2016. As the main contributor in income, real estate activities with own or leased property also registered as the major contributor in total expense with PHP310.0 billion or (96.9%). Real estate activities on a fee or contract basis spent only PHP10.0 billion (3.1%). Figure 4 shows the income and expense of the sector for establishments with TE of 20 and over by industry group in 2016.
NCR being the center of economic activities in the country, produced the highest income and incurred the highest expense amounting to PHP437.2 billion and PHP280.5 billion, respectively. The Rest of Luzon area earned the least income of PHP62.6 million and least expense of PHP58.8 million.
Income per peso expense stands at 1.53
The income per peso expense produced 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 industry, real estate activities with own or leased property recorded the higher income per peso expense of 1.54 which surpassed the national average. Conversely, real estate activities on a fee or contract basis posted 1.35 income per peso expense.
At the regional level, the Rest of Visayas reported the highest income per peso expense of 1.60, surpassing the national average. On the other hand, the lowest income per peso expense was registered in the Rest of Luzon area at 1.06.
Value added reaches PHP189.3 billion
Value added generated for establishments with TE of 20 and over of the sector totaled PHP189.3 billion. Real estate activities with own or leased property contributed the larger value added of PHP182.3 billion or 96.3 percent share to total while real estate activities on a fee or contract basis accounted for the remaining PHP6.9 billion or 3.7 percent.
Figure 5 shows the value added for real estate activities establishments with TE of 20 and over by industry group in 2016.
By region, NCR recorded the highest value added with PHP170.3 billion, followed by Central Visayas and Central Luzon with value added of PHP6.5 billion and PHP4.1 billion, respectively.
Labor productivity for the sector posts PHP3.6 million
Value added per total employment, a measure of labor productivity, was estimated at PHP3.6 million. Real estate activities with own or leased property recorded the higher labor productivity of PHP3.9 million, surpassing the national level. Meanwhile, real estate activities on a fee or contract basis attained a lower ratio of PHP1.1 million per worker. Figure 6 displays the labor productivity of the sector for establishments with TE of 20 and over by industry group in 2016.
NCR generated the highest labor productivity of PHP4.4 million among regions, exceeding the national average. The Rest of Luzon area registered the lowest labor productivity of PHP168.7 thousand.
Gross additions to tangible fixed assets sum up to PHP62.9 billion
The sector acquired an amount of PHP62.9 billion gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) in 2016.
Almost all of the gross addition to tangible fixed assets was acquired by real estate activities with own or leased property worth PHP62.1 billion or 98.7 percent. The remaining share was covered by real estate activities on a fee or contract basis with PHP819.5 million or 1.3 percent.
Among regions, NCR recorded the highest additions to fixed assets which amounted to PHP57.0 billion. Davao Region followed far second with PHP3.4 billion while the Rest of Luzon had the least share with PHP850 thousand.
Real estate activities with own or leased property industry posts the higher change in inventories
Total change in inventories (ending less beginning inventory) approximately amounted to PHP21.9 billion in 2016. Real estate activities with own or leased property reported a positive value of change in inventories with PHP22.1 billion.
By region, NCR registered the highest change in inventories with PHP10.5 billion, followed by CALABARZON and Central Visayas, with PHP8.8 billion and PHP2.6 billion respectively.
This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for Real Estate Activities for establishments with total employment (TE) of 20 and over.
The 2016 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 the year 2016 as the reference period, except for employment where the reference period is 15 November 2016.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.
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 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 31 December 2016 was used for the 2016 ASPBI.
The 2016 ASPBI uses a stratified systematic sampling with 3-digit or 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.
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)
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 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 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 of 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, 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) is obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domain and p refers to region
National level estimate of the the characteristics by industry domain are 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 84.0 (236 out of 281 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
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 2016.
Limitation of Data
Only the formal sector was covered in the survey.
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.
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.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.