[Update to this post](https://www.reddit.com/r/japanlife/comments/1afjlvn/why_is_this_house_so_cheap/?utm_source=share&utm_medium=web2x&context=3).
The agent got back with us today on this property and explained why it is so cheap considering every other property within a 2km radius is around 1.5 million to 6 million yen.
* There are no lifeline services to the area, or rather the area is too difficult for lifeline services. Essentially, the road is one way and while it is easy to get into the community, the road gets significantly narrower to get out of the community which prohibits lifeline services.
* While the area is in an urban development restriction (調整区域) zone, this area in *particular* is highly restrictive because the city wants to get people to move out of there due to the inability for lifeline services to get in and out
* The home itself is registered, but the additional two floors were not meaning the city doesn’t recognize those sections of the home
Essentially, the agent said the owner of the property is trying to dump it because it’s useless land for residence. It can only be assumed that purchasing the property would cause a lot of problems between the city and us, especially since there are unregistered additions to the building.
The agent advised that anything within an urban development restriction (調整区域) should be avoided as the land cannot be built on and anything there is grandfathered in because, I guess the city can’t force people out there homes; further development is not possible and banned.
If someone wants a private camping area, that’s probably about as much worth someone can get out of these type of properties.
Thanks to everyone who replied to my original post! My finance and I have learned a lot and we’re moving on in our search.