Kumagaya Saitama House
A house in Kumagaya City, Saitama Prefecture, that has been listed for sale since 2007. The most recent asking price was 7 million Yen.

Takashi Ishizawa, chief real estate analyst at Mizuho Securities, says a clear divide has formed between properties that can be re-sold and those that have no chance of selling. As properties in Tokyo's outer suburban areas continue to fall in value, they become more and more difficult to sell.

Properties with a chance of selling are located within a 20 km radius of Chiyoda-ku. Properties located east of Funabashi in Chiba and north of Omiya in Saitama are almost impossible to sell, even though asking prices of a house and land start from as little as 2 million Yen (19,000 USD). Developers are also careful not to venture past these zones.

The two main causes are the shrinking population and the shift in demand towards more central locations. In addition, the home buyers of today are seeking a better work-life balance and are avoiding areas that are over an hour from their office. 

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