They probably would decrease somewhat, because there's no longer an incentive for landowners to prevent people from building housing to keep the supply low.

This is something I’ve been wondering about with LVT. Wouldn’t they still have an incentive to stop people from building more dense housing near them? Even more of an incentive than now, in fact? Because the more people that can live and work in the immediate area near them, the more valuable the land is, and the more they’ll pay in tax.

As the land becomes more valuable, it becomes more valuable to them---better access to services, etc.

If it becomes more valuable, but in such a way that they can't leverage it, they can sell it.