
Melbourne’s best small homes under 60 sqm demonstrate how careful design can turn tight footprints into comfortable living spaces, according to the report.
Smart design shapes daily life.
Jack Chen’s 35 sqm dual‑purpose flat
Inside a 1970s block a few kilometres east of the central business district, architect Jack Chen of Tsai Design reimagined his own 35 sqm unit. The renovation avoids structural changes, instead adding a black kitchen with concealed timber cabinets, a fold‑out table that seats six, and a home office that disappears when not needed.
A full‑height window between the bathroom and kitchen can turn opaque at the push of a button, letting natural light flood the space while offering privacy. Timber flooring, preserved moss and large windows soften the minimalist palette, and mirrors placed strategically broaden the sense of room.
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Community‑focused 28 sqm lofts at Nightingale Preston
Just outside the city centre, the Nightingale Preston project by Breathe Architecture houses a set of seven lofts called Teilhaus, each measuring 28 sqm. The development follows a “triple bottom line” that targets affordability, sustainability and community.
Residents share rooftop amenities such as a garden, bathhouse, communal dining area and laundry. Inside a loft, a 4.5‑metre ceiling creates volume, cork flooring and recycled brick tiles add warmth, and a lofted sleeping platform sits above a flexible nook. The kitchen supports full‑scale cooking.
Co‑founder Jeremy McLeod said, “The design is half the size of a one‑bedroom apartment. It’s meant to be half the price, half the carbon, and ideally, half the bills.”
These projects illustrate a broader trend: as Melbourne consistently ranks among the world’s most liveable cities, residents and designers alike seek ways to make limited floor area feel generous.
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In the inner‑north suburb of Brunswick West, owner‑builder Shaun Tompkins tackled a 1960s block with a 42 sqm renovation of 380 Albert on a $20,000 budget. Using YouTube tutorials, a tool‑library subscription and help from friends, he assembled IKEA cabinets as the core of the kitchen and bedroom. Custom timber fronts stained pistachio green, locally sourced terrazzo tiles and a recycled benchtop complete the look.
Clever insulation and ventilation removed the need for an air conditioner entirely.
Melbourne’s compact housing experiments reflect a city grappling with high density while preserving a sense of place. By integrating multifunctional furniture, sustainable materials and shared amenities, these homes show that limited square footage can still support varied daily routines, from remote work to entertaining guests.
Each project balances aesthetic choices with practical constraints, proving that thoughtful design can overcome the challenges of small‑scale living without sacrificing comfort.