Sorry, it might be rude, it might be unfortunate for existing landlords, it might even be a terrible idea, but I don't see how you can call it "confiscation". If the defacto situation is maintained ownership until a decision is made to sell that is not confiscation.

If the city builds a trash transfer center right next to my house causing my property value to plummet I might be upset, but nothing has been confiscated from me because I do not own "the character of the neighborhood" except in some small collective part.

What term do you propose? I agree confiscation is imprecise, but I can’t think of another word that means an intentional act by a government to deprive a citizen of their property, or the value of their property.

Perhaps "devaluation"?

Confiscation, it is not, anymore than negative reports are confiscation of stock. You can liquidate and acquire a different asset. Personal preference has rarely been rewarded (re: eminent domain). There are windows of opportunity, timing and strategy inherent to capitalism. Sell before it passes (or the market adjusts) to maximize your realized asset value.

Both your examples (eminent domain and a government using propaganda to devalue a company) are forms of confiscation. It doesn’t matter if smart people would be able to foresee and mitigate the damage.

People are going to like that as much as they like devaluations or high inflation.