I have never understood why events such as this happen. 267 apartments were sold in Glen Waverley in 90 minutes for $70m. It doesn’t seem to me to maximize profits to the developer – charging higher prices and stretching out the period of sale (or using a simple auction procedure) would make more sense. It isn’t socially efficient either since this queue-based first-in, first served system does not allocate the units to their highest valued uses.
I have heard many explanations but none satisfy me. Comments welcome particularly from those with real estate expertise.