how does that work with agriculture or other land uses that don't build? do those people get taxed higher because they don't build?
Family just bought 20+ acres, forested, for about $15,000/acre... within 15 minutes of a MSA500k+population's downtown area.
But these values take into consideration zoning. So if you are ona residential block it is valued as such. But it would not be hard to figure out what it would be worth as high density. So the valuation problem is easily doable.
Also in Australia each state does it independently.
In the US this is typically done at the county level (3000+ individual counties, all doing it independently)