Functional obsolescence can occur from poor design, such as having a 5-bedroom house with no garage. This question mentions the location and time of construction but does not mention the design of the property, making functional obsolescence the most likely reason for the difference in value. As these two properties are almost in the exact same location, economic obsolescence (which is the same as external obsolescence) would affect both properties equally, and physical deterioration typically occurs when properties are old and start to suffer from wear and tear. Since the two properties are the same age, it's unlikely that one would deteriorate significantly faster than the other.
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