construction costs

With the ridiculous costs of construction in melbourne and sydney (especially melbourne) and the high cost of land within 20kms of the cbd, how do you think this will affect the prices of free standing homes? Good quality developments seem to be selling for $6-7k per m2 in Melbourne. I believe the Monument development in Sydney is selling for 15K per m2, if costs continue to rise we could be purchasing 10 sq apartments for 2m etc we could end up worse than London which has an average price of around $A1.4m for 2 b/r apartments.