Suppose there were two identical properties A and B, 500m (4-6 min walk) apart, the buyer demand could be very different.

For example, some buyers may not mind the ethnic make-up at A vs B, but they do mind the distance to public transport, Chinese supermarket etc, so they filter out B. Other buyers may not mind the dirtier street and rundown buildings at A vs B.

This illustrates that individual properties are highly differentiated. Almost every unit is unique and not interchangeable. Some units (like XX) are popular and highly “visible” and enjoy 100 times higher mindshare and 20 times more bids than another arguably “comparable” unit YY. If you can accept both units, then YY could have very few or no competing bids. Therefore it is realistic to find a bargain.

For an analogy, consider antique and artwork.