[snapplebobapple]

No, that is exercising market power and it causes dead weight loss (basically the worst thing that can happen in economics). When you have a project that needs x amount of land the project is a go as long as the cost of everything is less than the present value of the expected profits. The spread between the cost and the expected payout should be whittled away to a small number in an efficient market. In an inefficient market with market power that is whittled away to potentially zero by holdouts abusing their position to get extra payout far in advance of the value of their land. The efficient market results in lower end costs and more stuff for us all, which is pretty much always a benefit to society. The inefficient market costs us output and makes us all worse off.

Since you are legging into the real estate the secrecy pretty much always gets you closer to the efficient outcome rather then transparency because the efficient outcome has the land purchased at the current value, not the value based on market power abuse from knowing what the future private development plan for the land is.

[hgs3]

The buyer is the one giving the market power to the seller. If the buyer did not have interest in the land and did not buy the surrounding land, then the seller would not have power. It is not the sellers fault if the buyers project fails because they couldn't budget for the "inefficient market" they themselves created. Calling this "abuse" is sour grapes.

[snapplebobapple]

Wow, that is a very tortured re-imagining of reality. The buyer in this case needs a certain amount of land at a certain price to make their project make sense. If that amount of land is larger than the average size of land for sale, then they have to leg into the total land purchase by buying chunks of land over time until they have amalgamated their total land requirement. It is entirely the seller's fault because they are the ones demanding a very large markup on the previous fair market value of their land because they know the buyer has already spent millions to hundreds of millions and will potentially lose their shirt if the project fails. This is the textbook definition of market power abuse. The end result of which is an artificial limitation on projects that need more than the average amount of land for sale, less output from society and all of us being poorer for it. Also, you can't really budget for this kind of abuse because the seller is taking into account what they think you budgeted and trying to capture all of it. It's a death spiral for large projects playing that game and it's why some decent secrecy is needed in situations like these. There is no situation where a land owner getting a large payout for holding out is a good thing for society.

[hgs3]

The price of a good is not a constant. It doesn't matter whether it's land, gold, stocks, rent, or trading cards. Prices change. Buyers are never entitled to the "previous fair market value" of anything.

[benlivengood]

The simple answer is that acquiring large tracts of land isn't tractable in established areas. It requires forceful taking of some parcels or extravagant expense. Eminent domain allows the government to accomplish infrastructure projects at a (somewhat) reasonable cost but there's no expectation that private entities can achieve the same thing.