You will still be competing against everyone else who does the same, and your competition will be vastly increased. It will no longer be profitable for other nearby land holders to hold on to idle, vacant, or under-utilized land. For instance, if someone is holding on to a vacant building, a parking lot, or low density commercial development such as a strip mall, it may no longer be profitable to hold on to these under a land value tax.
The vacant building may be replaced with several small town houses, the low density commercial buildings may be replaced with multi-story mixed used buildings with additional housing built-in, as property owners seek to increase the value of their buildings relative to surrounding buildings in order to acquire a profit larger than the land value tax. They would pay the same tax regardless of whether they left the land vacant or put it to use, so there is a strong incentive for them to put it to the best use possible.
When land is actually improved and put to use, this increases the demand for labor and raises wages so that wages increase faster than rent. When land is held idle for speculative purposes, rent increases faster than wages and the average worker becomes poorer even if the output of the economy is increasing. Nominal prices may change in reaction to market condition, but what is important is wages relative to rent.
The vacant building may be replaced with several small town houses, the low density commercial buildings may be replaced with multi-story mixed used buildings with additional housing built-in, as property owners seek to increase the value of their buildings relative to surrounding buildings in order to acquire a profit larger than the land value tax. They would pay the same tax regardless of whether they left the land vacant or put it to use, so there is a strong incentive for them to put it to the best use possible.
When land is actually improved and put to use, this increases the demand for labor and raises wages so that wages increase faster than rent. When land is held idle for speculative purposes, rent increases faster than wages and the average worker becomes poorer even if the output of the economy is increasing. Nominal prices may change in reaction to market condition, but what is important is wages relative to rent.