Ethical to purchase property with "insider information?"

[David Friedman]

Hello BP members!

A little background on my question: My father and I do a large volume of transactions at our real estate firm. It is of utmost importance that we not only follow all of the laws, but that we conduct our business in an ethical manner. We are well known in the communities we do business in and from time to time we here about certain real estate developments and opportunities. Right now, I know of a project that is being built in one of my target cities and I know that the property values of the surrounding properties are going to go up.

My question is, "Would it be ethical to purchase/market to the surrounding properties from owners that may not know about the future development?" Some of the properties that I have in mind are already for sale, but my specific question is directed at property owners that do not have their properties for sale.

Thank you for any advice.