I don't know about long term value, but around here (northern suburbs of Melbourne, Australia) some people are making nice $ by buying land and then selling it a few months later. The demand for land is high and the available block count is low, so the value can increase by 5-10% within half a year.
We were lucky and got our block at May 2003 prices even though we are only settling this month. We paid $AUD103k, it's worth $AUD115k-120k now.
3 years ago it would have cost $AUD60k.
The developers are pushing up the price too. One release had blocks priced at $AUD86k; the next release ONE MONTH LATER had the same size blocks priced at $106k. This is pricing set by the developer, not individuals reselling their land. It's a staggering increase and enough to wipe out many first home buyers.
I am already planning to buy the block of land for our second house (even before we've built the first one) so that it just sits there and appreciates for a couple of years...
