Yes, hardware wise the Note 5 is superior to the Note 4, the Exynos 7420 is an absolute beast.
However, some people with certain requirements prefer the Note 4 because it's practical.
The Note 5 is all glass, would shatter easily.
The plastic back on the Note 4 costs 300 rs.
The Note 5 has no SDCard slot and the 64GB variant wasn't officially launched in Pakistan so no warranty for the people who actually want warranty.
The Note 4 has an SDCard slot.
The developer support, Exynos 7420 has virtually ZERO developer support. Thanks to Samsung for being a *****. 
The Note 4's Exynos 5430 has minor development support and it has another variant, with the SD805, which has good support on XDA and it even has a Note 5 style ROM built from Note 5 sources, so the UI is similar and the RAM management has improved.
Last, but not least. The price.
40k is a great price for a Note 4 considering the specs it offers. Some are looking to have the latest specs but to save some cash, so the Note 4 is the perfect device. You get an excellent display, the classic stylus and Samsungs slightly goofy looking TouchWiz UI.