This logic is prevalent largely in developing economies which have witnessed unprecedented boom in the real estate sector in the past decade or so. The price of land in these economies has gone up 10times in the past two decades. As a result, people in these countries have come to believe that the price of land always rises i.e. the real estate always goes up in value.
Hence, once again “land prices always appreciate in value” is a mythical statement. Land prices are connected to many factors one of which is the wellbeing of an economy in general.