[skybrian]

Yes, the transition would be pretty horrific both for property owners and banks, and therefore for the entire economy (see 2008).

I think that would be true for any reform that's actually effective in driving property values down.

[TimPC]

I think the effect size is far far larger than 2008 which would look like a minor correction compared to this change. If the effect size was only as bad as the 2008 correction we'd have an easy time doing this.

You're comparing a roughly 80% reduction in house prices with a promise that taxation will absorb further rises in the asset price of land to a 30% reduction in house prices with a promise that the market will eventually recover and grow to new heights. The first effect is nearly triple the second one, the change in future conditions makes it even more extreme.