They did that in China and housing prices are still sky high. As long as "number go up" is the belief in housing you'll have speculators and empty housing. Now you could tax empty (non-rented dwellings without a declared tax residence) and that would lower prices and increase supply.

Fair enough though there's a lot more behind China's construction boom than just market forces. Property taxes + ease of building still seems like a panacea for the rest of the world to me.