That also means engineering, management and labor for construction are much reduced in cost, provided you can find domestic engineers working at domestic salaries and management which isn't corrupt.

If labor is all that we have to worry then yes. But building materials prices are almost the same everywhere, so they still wouldn't be able to afford it

Definitely not, a 2x1m plywood board in Tokyo cost ~$50, while the same one back in my hometown of Spain is $10 (despite the average wages being the same in both countries).

I think you might be overestimating Chilean quality/economic circumstances. The big difference between Chile and Turkey is that larger earthquakes than that happen regularly all through the country (every two years at least) - and much larger ones one every decade.