2017 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities Sector For All Establishments: Final Results

Reference Number: 

2019-336

Release Date: 

Thursday, November 21, 2019

TABLE A  Comparative Summary Statistics for All Real Estate Establishments Philippines: 2017 and 2016

Table A

Majority of the establishments are in real estate activities with own or leased property industry

The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 4,734 establishments in the formal sector of the economy were engaged in real estate activities in 2017. This represents a decrease of 6.5 percent compared with the 5,065 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 4,100 or 86.6 percent of the total. Real estate activities on a fee or contract basis, on the other hand, recorded 634 establishments (13.4%).

The percentage distribution of the number of establishments for all real estate establishments by industry group in 2017 is shown in Figure 1.

Figure 1

Real estate activities with own or leased property industry employs majority  of the workers

In 2017, the total employment for the sector was recorded at 75,230 workers, a decrease of 8.0 percent compared with the 81,728 workers in 2016.

Of the total employment, majority of the workers were paid employees numbering to 74,984 (99.7%) and the rest were working owners and unpaid workers.

By industry group, real estate activities with own or leased property employed 67,961 workers or 90.3 percent of the total. The remaining 7,269 workers (9.7%) were engaged in real estate activities on a fee or contract basis.

Figure 2 shows the distribution of employment for all real estate establishments by industry group in 2017.

Figure 2

In 2017, the sector’s average number of workers per establishment was recorded at 16, the same with the previous year’s number of workers per establishment.

Real estate activities with own or leased property slightly surpassed the sector’s average of 17 workers per establishment. On the other hand, real estate activities on a fee or contract basis recorded an average of 11 workers per establishment.

Average compensation is PHP412.3 thousand per employee

In 2017, the total compensation paid by the sector to its employees amounted to PHP30.9 billion, an increase of 14.2 percent from the reported PHP27.1 billion total compensation in 2016.

Real estate activities with own or leased property spent PHP27.5 billion (88.9%) for the compensation of its employees. The remaining portion of the total compensation worth PHP3.4 billion (11.1%) was paid to employees of real estate activities on a fee or contract basis.

The sector paid an average annual compensation of PHP412.3 thousand per employee in 2017. This was higher by 24.3 percent from the previous year’s average annual compensation of PHP331.8 thousand per employee. Employees of real estate activities on  a fee or contract basis received an average annual compensation of PHP471.2 thousand per employee. Meanwhile, employees of real estate activities with own or leased property received an annual pay of PHP406.0 thousand per employee.

Figure 3 displays the average annual compensation of employees for all real estate establishments by industry group in 2017.

Figure 3

Real estate activities with own or leased property industry contributes the major share to total income and expense

The total income generated by the sector reached PHP675.6 billion in 2017, an increase of 17.0 percent from the PHP577.7 billion in 2016.

Real estate activities with own or leased property contributed the major share to the total income of the sector, which amounted to PHP651.3 billion (96.4%). On the other hand, real estate activities on a fee or contract basis generated an income of PHP24.4 billion (3.6%).

Meanwhile, the total expense incurred by the sector amounted to PHP459.0 billion in 2017, higher by 21.7 percent from the PHP377.1 billion expense reported in 2016. Being the main contributor to total income, real estate activities with own or leased property was also the major contributor to total expense worth PHP438.0 billion or 95.4 percent. Real estate activities on a fee or contract basis spent PHP21.0 billion or 4.6 percent.

The income per peso expense generated by the sector stood at 1.47 in 2017. This means that for every peso spent, a corresponding income of PHP1.47 was generated. By industry group, real estate activities with own or leased property recorded an income per peso expense of 1.49 while real estate activities on a fee or contract basis generated an income per peso expense of 1.16.

Labor productivity reaches PHP4.1 million per worker

The total value added generated by the sector amounted to PHP311.6 billion in 2017, an increase of 29.6 percent compared with the PHP240.3 billion value added in 2016. Real estate activities with own or leased property contributed a higher value added of PHP302.7 billion (97.1%) than the real estate activities on a fee or contract basis with PHP8.9 billion (2.9%) worth of value added.

Labor productivity, which is the ratio of value added to total employment, was estimated at PHP4.1 million per worker in 2017, higher by 40.8 percent compared with the labor productivity of PHP2.9 million per worker in 2016. Real estate activities with own or leased property recorded a higher labor productivity of PHP4.5 million per worker than the real estate activities on a fee or contract basis with labor productivity of PHP1.2 million per worker.

Figure 4 shows the labor productivity for all real estate establishments by industry group in 2017.

Figure 4

Gross additions to tangible fixed assets decline by 64.5 percent

The sector acquired a total gross additions to tangible fixed assets (capital expenditures less sale of tangible fixed assets) of PHP22.8 billion in 2017, lower by 64.5 percent from the PHP64.2 billion gross additions to tangible fixed assets reported in 2016.

Majority or 93.2 percent of the total gross additions to tangible fixed assets were acquired  by real estate activities with own or leased property which amounted to PHP21.2 billion. The remaining PHP1.6 billion (6.8%) were accounted for real estate activities on a fee or contract basis.

Total change in inventories records at PHP33.9 billion

In 2017, the total change in inventories (ending less beginning inventory) for the sector amounted to PHP33.9 billion. Compared with the total change in inventories of PHP25.8 billion in 2016, this figure increased by 31.2 percent.

 

 

(Sgd.) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

 


 

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2017 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 2017.

The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry sub-group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

Legal Authority

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 establishments frame 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 economic 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. 01 Series of 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 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.

Sampling Design

The 2017 ASPBI uses a 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 Formulafor the non-certainty employment stratum TE less than 20 in the sth industry domain was

solution 1

where:

s   =  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

Solution 2

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 ( Xc )  for the certainty employment stratum in the Cth industry domain was

Solution 3

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 characteristic for the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

Solution 4

where  denotes the industry domain

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 Formulafor the non-certainty employment strata in an industry domain in each region,

Solution 5

where:

s      = denotes the non-certainty employment strata in TE of 20 and over
p      = 1, 2,..., 17  regions (geographic domains)
xspj  = value of the jth establishment 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 jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

Solution 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 industry domain in each region

b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCCs and with  TE 100 and over)

The estimate of the total of a characteristic Formulafor the certainty employment stratum in an industry domain in each region,

Solution 7

where:

     = denotes the certainty employment strata in TE of 20 and over
     = 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
      = 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 Formulafor the industry domain in each region (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

Solution 8

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates Formulafor 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

Solution 9

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

Solution 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 20-99 for the industry domain within each geographic domain (region)

Response Rate

Response rate for all Real Estate Activities sector was 77.0 percent (271 out of 352 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 19 establishments responded online.

Reports of the remaining non-reporting establishments were taken from the financial statements from Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2017 were not included in the generation of statistical tables.

Limitation of Data

The survey covered only the formal sector of the economy.

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 is 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.

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 is 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 additions to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Income or Revenue is the 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 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.

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.

Value added is gross output less intermediate input. Gross output for Real Estate Activities sector is the sum of real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties,income from service rendered, 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.

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