Being a developer I can answer this by saying, “It depends”. Land is worth this:

Total Project Revenue – Total Project Costs – Developer Profit (Typically 10%) = Land Value

It’s very simple. We as developers back into the value of the land. Today, as the housing market has slumped, holding all else equal, the land value goes down.

Pure and simple. My comment “It Depends” is based on the fact that while residential has slumped my industry, retail, has not. But it’s coming…we are eventually going to get slammed too. Them I am moving to China to develop.