How do you propose to implement this? In the past, living on the better land meant others would be more likely to try to take it by force. If you attempt to suppress this dynamic entirely instead of transforming it into some other dimension (e.g. violence to money), you will fail and it will be replaced by either a money black market or violence or both.

Also would seem to encourage slumlords - if it's worth what it's worth, why bother with things like "maintenance", "repairs", or god forbid "upgrades"?

They tried to do this in Stockholm, but in the end it completely messed up the apartment market. People end up queing for years, or you buy on the black market for vastly inflated prices.

Demand creates supply, but not necessarily at the price point you want.

The best housing policies work with the market, and use regulation to keep NIMBYs in check, update zoning as necessary and allow builders to build enough m2 to satisfy demand.

You can't wish or legislate away the law of supply and demand for basic needs and physical goods.

E.g., even in North Korea there are black markets where prices go to the equilibrium value.