>It will have a domino effect because the last house in the neighborhood full of subdivisions will have the lowest sale value (and the first house to subdivide will be the most valuable).

I'm not sure there is any logic in believing that. Since even a 4x increase in housing wouldn't provide enough to meet demand, if everyone else subdivided and you didn't yours would be worth more not less. The only way your fears would happen is if they allowed apartment complexes on the new lots and density increased by 10-50x.