If building prices fall dramatically will it affect overall price?

Just a thought I had and was wondering what other people's opinions are.
With advancements in technology there's quite a possibility that the price of building a house could fall substantially. To me, building by placing these little bricks next to each other by hand seems prehistoric.
I imagine someone will come along soon and be able to build a house in a few weeks to a better standard than what we have now for a massively reduced cost.
So if building a house came down to say $50k what would that do to the value of the house next door.

I think after initial fluctuations it would revert to pretty much the same price.
I belive people pay the maximum the market will bear. And the land price would just increase to absorb any discounts on the building side of it.

So if there was a older house for sale for 350k and you got the lot next door for 150k and built a house on it, it would still sell for 350k even thoe it only cost 50k to build.
So would that mean that next time a lot comes for sale it would be worth sell price , minus build cost, ie 300k? Obviously there's a little fat in it but you get my point for this argument.


Dose that make sense?
Anyone else have thoughts on this?

 

That's the same as asking: "If Norman Lindsay only paints in oils & Lloyd Rees does water colours, will the price of Norman Lindsay's work collapse? "

(or the weatherboard 's brick argument).

 

I actually think the price of construction will fall over time as machines replace people. Over time imwoukd think this will lower costs and thus might lower prices. Will take quite a while to flow through though and is another reason why location is absolutely key (ie machines will build cheaper but a prime location will always be a prime location).

 

Has the use of polystyrene panels or hebel panels made houses cheaper?

Theoretically, using SIPs should make building faster and therefore cheaper since these panels are both cladding and structural.

In fact, builders will charge what the market will bear.

 

There is a lot more to the construction of a house than just the outside skin.

A prefab house frame already goes up in about 5 days, a roof takes 1 day.

The bricks/Hebel/concrete block...whatever the outside is constructed of can take a while...

But generally the internals can be started on once a house is wrapped.

Windows, doors, handles, appliances, heating units, electrical wiring, internal fit out, stone benches....the list goes on....construction will always cost a lot of $$$