The flaw in your argument is in definition of land ownership. You own the rights to use some portion of land somewhere. The rights are provided by other people,

The flaw in your argument is in definition of land ownership. You own the rights to use some portion of land somewhere. The rights are provided by other people, ie. a community represented by state. 'Buying' land, ie. transfer of rights from previous owner to new owner is a transaction which excludes the actual provider of the service of land rights, which is other people who will respect the new 'ownership'. Current system is equivalent to giving infinite land leases, or very long like 100 years. The way to fix this is to either have a yearly 'land tax' system to collect percentage of the land value or simply provide the land leases for like 7 years for commercial and/or longer for residential. Each 7 years you'd have a land lease auction. Similarly to having a electromagnetic spectrum auctions or how DNS should be organized - periodic auction to prevent domain squatters to hold premium domain name 'real estate' near valuable domains (using levenshtein distance).