A total "fail" for this. Read Robert Shiller's piece, "Unlearned lessons from the Housing Bubble". Urban land is NOT "in short supply"; less than 1% of the world's area is urbanised, and the price of farmland and land in other uses has steadily dropped relative to the price of urban land for decades, indicating that there is no shortage there either. The real (in income related terms) price of food and agricultural product has fallen for decades, which is why the price of land for producing it has also fallen in real terms.
In any city where there are no regulatory restrictions on converting fringe land to urban use, the price of URBAN land has ALSO fallen in real terms; AND these cities do NOT have house price bubbles.....!!!!!!!