Burning down an apartment building doesn't change what could be done with the lot; an appropriate valuation method for LVT would not give a different valuation for the land depending on what is built on it.

> Burning down an apartment building doesn't change what could be done with the lot; an appropriate valuation method for LVT would not give a different valuation for the land depending on what is built on it.

True, but an LVT is a cost. Changes in cost can change what is financially viable to do with a property, regardless of what is currently done with the lot, and thus can impact the land value.