That's not the way it works. The "increase in area pricing" is just the result of adding new units. The older ones don't go up in value, so there's no increase in value to capture.
That's absolutely how it works, I've benefitted from the process several times in some areas and been entirely locked out of the market in others. You might need to closely examine the process (and margins) around house flipping if you're confused on this point.
