56 percent of penthouse condo units bought with cash says Nikkei

On June 21st, the Nikkei Shimbun reported that cash buyers account for most top-floor tower condominium units in central Tokyo and Osaka.

Nikkei reviewed property registry records for 1,867 top-floor units in 303 high-rise condominium buildings with 20 or more floors.

The survey covered six central Tokyo wards - Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Bunkyo - and three central Osaka wards: Kita, Chuo and Nishi.

Of the units reviewed, 1,051, or 56% were purchased without a mortgage.

Graph courtesy of the Nikkei Shimbun, edited by Patience Realty.

In Japan, mortgage borrowing is usually visible in property registry records because a mortgage lien is registered against the property. That allowed Nikkei to examine how often buyers of premium tower condo units used cash rather than bank financing.

Cash Purchases Highest in Chiyoda Ward

Top-floor units in tower condominiums are often marketed for their views, privacy, scarcity and premium interiors.

In Tokyo, Chiyoda Ward had the highest share of cash purchases among top-floor tower condo units at 69%.

Minato Ward followed at 60%, while Shinjuku and Shibuya were both at 59%.

Even Chuo Ward, the lowest among the surveyed Tokyo wards, had a cash-purchase ratio of 52%.

In Osaka, cash purchases also accounted for at least half of surveyed top-floor units.

Chuo and Kita wards each stood at 53%, while Nishi Ward was at 50%.

Who Is Buying

Real estate agents quoted by Nikkei said buyers of top-floor tower condo units are often business owners, wealthy individuals, foreign purchasers and people buying second homes or investment properties.

A representative at Nomura Real Estate Solutions said many buyers understand the scarcity and asset value of top-floor units.

Shogo Fujita, president of FJ Realty in Tokyo’s Chuo Ward, said some buyers in Tokyo’s bay area resemble “tower condo collectors.”

Foreign ownership is also visible.

Overseas residents owned 100 top-floor units, equal to 5% of the surveyed total.

China accounted for 47 of those units, followed by Taiwan with 16, Singapore with 11 and the British Virgin Islands with seven.

Based on names recorded in property registries, Nikkei estimated that 170 units, or 9% of the total, appeared to be owned by foreign individuals.

Why Cash Matters

Cash buyers can move faster than mortgage-backed buyers.

That speed can matter in scarce, high-value transactions where loan approvals may take longer.

A Minato Ward real estate brokerage representative told Nikkei that buyers are more likely to use mortgages when properties are priced in the JPY 100 million range.

Once prices reach around JPY 300 million, cash purchases become more common.

A Nomura Real Estate Solutions representative said Japanese housing loans are generally capped at around JPY 300 million to JPY 500 million.

Above that level, approvals often require different bank departments and senior decision-makers, slowing the process.

Cash Buying Extends Beyond Penthouses

Nikkei’s main survey focused on top-floor units, but separate data showed cash buying is common across tower condominium buildings more broadly.

Using data from TRUSTART, Nikkei examined all units in 201 tower condominium buildings in Tokyo’s six central wards.

For new condominium sales and existing condominium transactions between 2014 and 2025, cash buyers accounted for 46% of all units.

By ward, Shibuya had the highest cash-purchase ratio at 57%.

Chiyoda followed at 55%, and Shinjuku at 54%.

Chuo Ward was the lowest at 38%.

Higher Prices, More Cash Buyers

Nikkei also compared TRUSTART’s data with average condominium price data from One of a Kind, operator of the Mansion Review real estate information site.

The data showed that areas with higher average prices tended to have higher cash-purchase ratios.

As of the end of 2025, the average price of all tower condo units, converted to a 70 sqm basis, was JPY 290 million in both Shibuya and Minato wards.

Chiyoda Ward stood at JPY 270 million.

In Minato Ward, one top-floor unit in a 46-story tower condominium was listed at about JPY 1.1 billion for approximately 120 sqm.

Market Outlook Turns Less Certain

While tower condominium prices have continued to rise, market observers quoted by Nikkei pointed to signs of uncertainty.

Tomohiro Makino, head of Oraga Research Institute, said some buyers treat tower condos like a money game, reselling quickly and sometimes holding units for less than two years.

Masayuki Takahashi, senior chief researcher at Tokyo Kantei, said higher-income buyers have pushed prices upward in recent years, raising the question of who may eventually be unable to resell at a profit.

Rising interest rates are one concern.

Makino said resale-focused buyers now need to raise rents or resale prices significantly to make their strategies work.

Inventory is another issue.

Takahashi said existing tower condo inventory began building around 2024, and buyer inquiries had started to slow by autumn 2025.

For now, cash buyers remain a major force at the top of the tower condo market.

But rising financing costs, weaker resale expectations and growing inventory suggest the market is entering a more selective phase.

Source:

Nikkei Shimbun (Japanese only; paywalled)