I’m not sure that straightforward, the value of the land will only really increase if the project is somewhat successful and the landowners (not necessarily part of the “local community”) expect to be paid the already inflated price without having to take on any risk.

Both sides are just trying to maximize/minimize their gain/cost, introducing some moral angle just seems weird to me.

Especially when any attempt to significantly expand the housing supply (considering the current situation) should surely be viewed as a net positive for the society as a whole?

No, they are being private about their future plans to avoid being ripped off themselves.