Properties around water logged areas can be developed actually they are usually one the very good areas that capture people's interests especially when they have started being developed.
I don't think a property in a water logged area could be suitable for the LandDAO team, not just for them but for the buyers that would be interested to be a land parcel. A water logged area may requires huge amounts of sand to refill the area before it will be suitable for any building construction.
If you want to sell a land or you have a land you want the team contributors to review, it must be a good and cheap land that will be suitable for whether building or recreational purposes.
This make sense to me because I expect that land that must be purchase ought to pass some criteria of selection that will be done through feasibility studies. In other words, the land must be viable to be selected as that is the only way such land can be put into productive use that will grow the value of the NFT tied to such land. I think water logged areas may not pass the selection criteria because such be capital intensive to develop.