Correct, site prices have not come back in line with other property, the problem is that landowners have traditionally (at least for the last 10 years) viewed site sales as a windfall (a mini lotto win). Generally they are not under pressure to sell but seeking opportunistic sales. Not all land-owners however are in such a smug position. My advice is wait, at least 1 year. Some of them will break ranks out of necessity and that will cut the legs out from the other speculator types. I echoe the advice above from Kate 10, when you do begin to seriously deal, (next year when build costs have dropped even further)
"Ignore the list prices, Look at similar completed houses in the area ..what are they selling for? Deduct the construction cost of the house & maybe 10% for planning costs etc. You're left with the max site price that you should pay. Then, when you find a site you liked, offer to pay my max site price less 20 - 30%.
If you plan living there for 10, 20 or more years, you are in no rush, rent somewhere nearby for a year and get the feel of the community for almost zero risk