NSW $4m vs $5m house on same street

$5m house: https://www.realestate.com.au/sold/property-house-nsw-strathfield-136388310
$4m house: https://www.realestate.com.au/sold/property-house-nsw-strathfield-136761474

They are on the same street, same side of the street, built within a couple years of each other I think. The key differences are:
- $5m house is a nicer build
- Has a slightly better overall layout I think. The $4m house has a piano room which is very specific, and has 5 bedrooms upstairs instead of standard 4 upstairs and 1 downstairs in a 5 bedroom house. $5m house has larger voids upstairs and a bigger balcony doesn't have cinema/theatre room though. Kitchen design is more open for the $5m house.

Overall the $5m house is nicer, but I was a bit surprised about the $1m price difference. Superior layout + higher end fittings?

I have seen some other examples of large differences in sale prices:
$4.2m: https://www.realestate.com.au/sold/property-house-nsw-strathfield-134216418
$3.2m: https://www.realestate.com.au/sold/property-house-nsw-strathfield-134388094

 

Is it just the hot market, lack of stock and emotional buyers? At that price point there are buyers who are more flexible and can just offer more if they want it.

 

That was similar to my hypothesis. At that price point, seemingly minor differences can be exacerbated. The buyers at that price point would have an expectation of high end fittings and a better open floor plan; so the $4m house gets less attention, not as highly sought after, buyers get less emotionally attached to it.

 

The more expensive house has better access to the Cooks River Greenway, that's enough to convince me to part with an extra $1m.

 

The buyers with the money bought their property and were no longer in the market bidding up the price. Prices came down to meet what remaining buyers wanted to pay,