if you permit more density on a small amount of land, the value of that land will go up. there's only a few places to put the new units, so the good land is scarce, and the price goes up
if you do it over a whole city, i'm not sure it still holds. not as much, anyway, since the developers have more choices on where to build
I'm not sure that's an experiment we'd see unfold due to NIMBYism. (Not commenting on whether that's an appropriate reaction, just that it's inevitable.) So I wonder if within realistic constraints it's still a fairly safe assumption?
if you do it over a whole city, i'm not sure it still holds. not as much, anyway, since the developers have more choices on where to build