I think the bigger issue is that prices may be extremely inflated in both locations, relative to construction cost of replacing current improvements with new im

I think the bigger issue is that prices may be extremely inflated in both locations, relative to construction cost of replacing current improvements with new improvements of equal utility, due to national or global real estate credit bubbles, which have the power to wreck the economy. The external value of the location should not be heavily capitalized into the sales price regardless of the amenities of the location. When someone asks $400,000 for a building which costs $200,000 to replace, the buyers are likely to build a new building next door for cheaper unless the land is impossible to acquire or being held off the market at high prices. The duration which private owners are allowed to hold vacant land off the market and hold out for higher prices is ultimate determined by public financial policy.