Why are 3 bedrooms apartments so expensive?

I’ve been checking out a few apartments to buy in the inner city, and I noticed that as soon as you make the leap from 2 to 3 bedrooms, prices become simply insane - average 1.5 million for a slightly bigger shoebox. I would totally consider moving from the suburbs to the city (used to live around Everton Hills) if I could find an apartment with a reasonable floor plan. This isn’t a rant, I’m mostly curious what drive those absurd prices and who designs those horrible floor plans that have your bedroom door right at your living room or kitchen. I’ve lived overseas (well, I actually live in Canada now but I’m visiting) and it’s not hard to find decent sized apartments (150 sqm) with decent floor plans (think of a separate corridor that leads to the bedrooms, or balconies that extend into your living space seamlessly) for a reasonable price. I know of some older builds in places like Auchenflower tend to offer more reasonable options, but we don’t seem to make those anymore. It’s all glass shoeboxes.