Key facts
- Around 60% of penthouses in central Tokyo and Osaka's high-rise buildings were bought with cash.
- Chiyoda Ward in Tokyo had the highest cash purchase rate at 69%.
- Overseas residents own about 5% of these top-floor units, with Chinese buyers leading.
- Cash deals allow for faster transactions and bypass lengthy mortgage approval processes.
- Ultra-luxury properties are seen as safe assets attracting consistent investment.
The majority of penthouse owners in approximately 300 high-rise residential buildings in central Tokyo and Osaka paid for their properties in cash, according to Nikkei research. The investigation into property registry records revealed that about 60% of these top-floor luxury units were purchased without mortgage financing.
In Tokyo, Chiyoda Ward recorded the highest cash purchase ratio at 69%, followed by Minato Ward at 60%, and Shinjuku and Shibuya Wards at 59% each. Osaka showed similar trends, with Chuo and Kita Wards at 53% cash purchase rates, and Nishi Ward at 50%.
Of the 1,867 penthouse units surveyed, 100 units, or 5%, were owned by overseas residents. Buyers from China accounted for the largest share among foreign owners with 47 units, followed by Taiwan with 16 and Singapore with 11. The actual share of foreign ownership could be higher, as properties are sometimes purchased through Japanese corporations.
Experts attribute the preference for cash deals among high-net-worth individuals and corporate executives to lower financing costs and faster transaction speeds. Bypassing traditional retail financing allows buyers to secure rare luxury properties more quickly, as high-value mortgages can prolong closing times due to internal bank approval chains. This dynamic isolates top-tier pricing from immediate credit restrictions but may increase exposure to speculative turnover liquidity risks.