Lower taxes means more money people can devote to housing, which in turn can also bid up prices.
This is why the USA provides for a foreign housing deduction, or Americans could never practically live in Singapore without running into double taxation.
Reiterating the other comment: this is not true of LVT. LVT cannot be passed on to renters. Essentially every other tax can be and is passed to consumers. No economist disputes LVT’s inability to be passed on.