Absolutely. This is also true for a lot of American blight like run down strip malls in otherwise economically healthy communities. One partial solution is to switch to a Land Value Tax so that the tax structure incentivizes using land for the best use as soon as possible.
An LVT won't necessarily lead to the best outcome if plan alignment and build resources aren't considered. Say you are waiting to acquire more land before you can put a good plan into action, or are waiting for transit infrastructure or a bunch of other things that must be considered.
But LVTs do prevent just squatting and speculating more than property taxes do.
If there is no transit yet your land price will be much lower. If small land passels are less valuable then potentially that is also gone impact land price.
LVT is based on the maximum improved value of the land, not the value at current improvements. So it would include transit that could be built in the future (a potential improvement), not just transit that is built today.
https://en.wikipedia.org/wiki/Land_value_tax