This is true (though since land is a finite resource, market forces can also encourage landowners not to sell the land to someone wanting to put it to efficient use now if the shortage of suitable development land in the area is likely to grow worse)

The theory behind LVT is that the increase in a land's value from it becoming the centre of a bustling city should accrue to funds the government spends on the city's population (which helps make land more valuable) and not the person that's sitting on the land