7 in 8 establishments in the sector are engaged in real estate activities with own or leased property
Final results of the 2012 Census of Philippine Business and Industry (CPBI) showed that a total of 4,656 establishments were engaged in real estate activities. Real estate activities with own or leased property leads the sector with 4,046 (86.9%). Figure 1 shows the percentage distribution for all real estate activities establishments by industry group in 2012.
Real estate activities with own or leased property employs more workers
The sector employed a total of 76,282 workers in 2012. Of the total, almost all (98.6%) were paid employees and the rest were working owners or unpaid workers.
Being the dominant industry, real estate activities with own or leased property likewise employed more workers with 69,532 or 91.2 percent of the total. Real estate activities on a fee or contract basis accounted for the remaining 8.8 percent (6,749). Figure 2 shows the distribution of employment for all real estate activities establishments by industry group.
Employees in real estate activities with own or leased property receive higher compensation
In 2012, the sector paid a total compensation of PHP27.5 billion, an equivalent of PHP366,193 average annual compensation. About 92.2 percent of the total compensation was paid by real estate activities with own or leased property while the remaining 7.8 percent by real estate activities on a fee or contract basis.
By industry group, workers in real estate activities with own or leased property received higher average annual compensation (PHP370,339) than those in real estate activities on a fee or contract basis (PHP323,384). Figure 3 shows the average annual compensation for all real estate activities establishments by industry group.
Real estate activities with own or leased property contributes the major share in income and expense
Gross income realized by the sector reached PHP803.3 billion in 2012. Real estate activities with own or leased property contributed 98.3 percent (PHP789.6 billion) while real estate activities on a fee or contract basis shared 1.7 percent (PHP13.6 billion). Total expense (including compensation paid to employees) amounted to PHP599.8 billion in 2012. As the main contributor in income, real estate activities with own or leased property also incurred higher expense with PHP589.9 billion (98.3%). Figure 4 shows the income and expense for all real estate activities establishments by industry group.
Income-expense ratio stands at 1.34
The section generated an income of PHP1.34 for every peso spent. Real estate activities on a fee or contract recorded the highest income-expense ratio with PHP1.38 while real estate activities with own or leased property generated PHP1.34.
Value added totals PHP224.8 billion
Value added generated by real estate activities sector totaled PHP224.8 billion in 2012. Real estate activities with own or leased property registered higher value added (PHP218.1 billion or 97.0%) than real estate activities on a fee or contract basis (PHP6.7 billion or 3.0%).
Real estate activities with own or leased property reports higher labor productivity
Value added per worker, a measure of labor productivity, was estimated at PHP3.0 million. Real estate activities with own or leased property led the sector with PHP3.2 million. Real estate activities on a fee or contract basis recorded a lower ratio of PHP982.8 thousand. Figure 5 shows the value added per worker for all real estate activities establishments by industry group.
Gross addition to tangible fixed assets reaches PHP12.3 billion
Gross addition to tangible fixed assets (capital expenditures less sale of tangible fixed assets) reached PHP12.3 billion.
Real estate activities with own or leased property acquired bigger gross addition to tangible fixed assets with PHP11.2 billion while real estate activities on a fee or contract basis got a smaller amount of PHP1.1 billion.
Total change in inventories amounts to PHP19.4 billion
Total change in inventories (ending less beginning inventory) amounted to PHP19.4 billion in 2012. Real estate activities with own or leased property derived a positive value of PHP19.5 billion. On the other hand, real estate activities on a fee or contract basis listed a negative value of PHP64.3 million.
Subsidies and Sales from E-Commerce
Subsidies are grants received from the government in the form of financial assistance or tax exemption to aid and develop an industry. In 2012, establishments engaged in real estate activities did not receive any subsidies from the government.
E-Commerce refers to the selling of products or services over electronic systems. Similarly, none of the establishments reported sales from e-commerce activities during the reference year.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Real Estate Activities sector for establishments with total employment of 20 and over.
The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and coverage
The 2012 CPBI was 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 establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
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 Classificatin (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport 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)
Private Education (P)
Human Health and Social Work Activities (Q)
Arts Entertainment, and Recreation (R)
Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
Branch (EO=2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO=3) is one where the establishments is located in the same address as the main office and with branch/es elsewhere.
Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
Ancillary unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole propietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whatever they are stock or non-stock corporations.
Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial Classification. The Industrial Classification of an economic unit is 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 Enumeration. The size of an economic unit 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/enterprise. 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.
The following are the size codes and corresponding total employment used in the 2012CPBI:
Geographic Classification. Establishments are also classified 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 latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.
Total response rate for Real Estate Activities sector was 93.6 percent (793 out of 847 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, nine establishments responded online and no sample establishment accomplished e-questionnaire nor submitted in portable document format (PDF) through e-mail.
CONCEPTS AND DEFINITIONS OF TERMS
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 November 15, 2012.
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 includes 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.
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.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and agricultural/forestry/fishery and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
Value added is gross output less intermediate cost.
Gross output for real estate activities is the sum of the real estate sales (less real estate sold), commission and fees earned, income from non-industrial service done for others less rent income from land, sales of goods (less cost of goods sold), other 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; water; cost of industrial services done by others; cost of non-industrial services done by others (less rent expense from land); research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other expense; change in inventoriesof materials and supplies, fuels, lubricants, oils and greases and other inventories.
Gross addition to tangible fixed assets is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
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.
Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.
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.
Source: Philippine Statistics Authority - National Statistics Office