Well if the land belongs to the city, they can do with it as they please, including central planning? I'm not saying it is ideal, but I think that is usually how it is done? And if you want to sell land to people to build houses for their family, you better provide them with some incentives, like promising to build schools, sanitation and so on.

It also is not as hopeless as socialism because people are not forced to take the offer. they can negotiate with the city, too. They can even start their own cities.