May 28, 2026

Five of Melbourne’s Best Small Homes Under 60sqm/645sqft

From copper pods to sustainable lofts and restored modernist flats, these Melbourne homes show how thoughtful design can transform compact spaces into flexible, light-filled places to live.

Old walk-ups, converted hotels, and DIY restorations – Melbourne's small homes are built for adaptability. Creatively reworked to suit compact, contemporary living in the city, these five homes find light, flexibility, and warmth in even the most compact spaces.

Writing:

Bec Vrana Dickinson

Photography:

Never Too Small

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In a city with more street furniture per person than anywhere else in the world – and consistently ranked among the world's most liveable – Melbourne is accustomed to making spaces worth lingering in. The same instinct for comfort, practicality and a little style runs through its homes too. Through careful planning and multifunctional design, these small Melbourne homes prove that less floor space doesn't mean less life.

Fold-out tables disappear into cabinetry, lofted beds free up living space below, and joinery doubles as storage, workspaces and room dividers. Materiality, sustainability and adaptability define each project, whether through restoring heritage apartments, rethinking 1970s building stock, or designing affordable homes centred around community and low-impact living.

These small homes are comfortable, considered and worth lingering in – very Melbourne.

‍1. Compact Apartment with Smart Joinery and a Concealed Home Office, 35sqm/377sqft

Inside a 1970’s apartment block just a few kilometres east of the Melbourne CBD, architect Jack Chen of Tsai Design reworked his own 35sqm/377sqft apartment, a space that moves fluidly between home and office. Rather than major structural changes, Jack introduced a series of integrated interventions: a black kitchen with concealed timber cabinetry running along one wall, a fold-out dining table tucked within the joinery seating up to six, and a fold-away home office that can “disappear” when not in use. For internal light, a full-height window between the bathroom and kitchen switches from transparent to opaque at the touch of a button. Natural materials – timber flooring, preserved moss, large windows – soften the minimalist palette, while strategically placed mirrors expand the sense of space throughout this compact, considered home.

Find out more details about Type Street Apartment in this full article, including imagery from Tess Kelly, and the full video tour https://www.nevertoosmall.com/post/type-street-apartment-melbourne

Used only occasionally, the dining table lives tucked within the joinery, folding out to seat six when entertaining.

Living space and home office co-exist in the centre of the apartment, where the desk can “disappear” when needed, while the lounge chair can convert into an office chair, and back again.

An internal window between the bathroom and kitchen flows northern light into the kitchen. A switchable privacy film frosts the glass at the press of a button.

A window bench maximises natural light in the living space, with built-in book storage below doubling as a reading nook.

2. Small Terrace Home Designed for Affordable and Sustainable Living, 28sqm/301sqft

Just kilometres from Melbourne's city centre, Nightingale Preston by Breathe Architecture is home to Teilhaus – seven 28sqm/301sqft lofts built around Nightingale Housing's triple bottom line: affordable, sustainable, and community-focused. Derived from the German for "part of a house," the Teilhaus extend daily living beyond its walls through shared rooftop amenities – a garden, bathhouse, communal dining, and laundry. Inside, a 4.5-metre ceiling amplifies volume, cork flooring and recycled brick tiles chosen as much for sustainability as warmth. A lofted sleeping area sits above a versatile nook, and the kitchen is equipped for full-scale cooking. "The design is half the size of a one-bedroom apartment," says co-founder Jeremy McLeod. "It's meant to be half the price, half the carbon, and ideally, half the bills."

Find out more details about Nightingale Preston Teilhaus in this full article, including imagery from Derek Swalwell, and the full video tour https://www.nevertoosmall.com/post/loft-in-melbourne-redefines-sustainable-living

The reimagined terrace lofts called *Teilhaus*, deriving from the German for "part of a house", are built around a triple bottom line: affordable, sustainable, and community-focused.

The loft sleeping area is reached via an Australian messmate stepladder, while the diamond mesh safety screen mirrors the mesh screening on the deck outside.

Floating mid-century wall shelving in the living area keeps the space open and storage off the floor, displaying books, plants, and objects alongside the TV unit.

Designed to replicate the experience of cooking in a larger home, the kitchen features a four-zone induction cooktop and a full-sized oven.

3. Sustainable DIY Apartment Renovated on a $20K Budget, 42sqm/452sqft

In a 1960s apartment block in the evolving inner-north neighbourhood of Brunswick West is 380 Albert – a 42sqm/452sqft apartment designed and renovated by owner and sustainable building officer Shaun Tompkins. With a budget of $20K AUD, the renovation was a budget-conscious DIY endeavour that came together with the help of YouTube tutorials, a tool library subscription, and friends. Built on accessible basics, like IKEA cabinets as the base structure for the kitchen and bedroom, pieces were then finessed – a recycled benchtop, custom timber fronts stained pistachio green, locally sourced terrazzo tiles, and plenty of marketplace finds. Clever insulation and ventilation strategies removed the need for an air conditioner entirely in this resourceful blend of old and new. Even the popcorn ceiling was kept – "to pay homage to the original design," says Shaun.

Find out more details about 380 Albert in this full article, including imagery from Matto Lucas, and the full video tour https://www.nevertoosmall.com/post/a-sustainable-building-officers-diy-renovation

The base structure of the kitchen is from IKEA, which was then customised with a recycled and reclaimed benchtop from Urban Salvage and custom-cut timber fronts stained pistachio green.

Shaun kept the original bathroom floor tiling and added contrasting terracotta tiles on the shower, splashback, and as a skirting.

The modular sofa keeps the living space flexible – a two-seater with a chair, or pushed together as a three-seater for movie nights with the projector.

IKEA reappears in the bedroom, customised with pistachio-stained plywood fronts matching the kitchen, and the custom floating shelf above the desk designed by friend Marcus of Blue House Studios, Sydney.

4. Heritage Hotel Apartment Conversion with Hidden Multifunctional Joinery, 50sqm/538sqft

Within the heritage-listed Grand Hotel in the Melbourne CBD is Small Grand Apartment – a 50sqm/538sqft conversion by the talented team at Tsai Design. The redesign saw the bedroom and kitchen swap positions, placing the sleeping area in the darkest corner of the floor plan, bringing the kitchen into the open living zone. There, an 8m wrap-around countertop sits seamlessly within the living area, its curve concealing the bathroom entrance behind a hidden door. A timber nook defines the sleeping area, its arched ceiling a nod to the building's original restored archway. In the living zone, a custom credenza doubles as a TV cabinet and dining seating, while the drop-leaf table can convert between desk and dining, for a flexible space that matches light with purpose.

Find out more details about Small Grand Apartment in this full article, including imagery from Tess Kelly, and the full video tour https://www.nevertoosmall.com/post/small-grand-apartment-melbourne

The kitchen blends seamlessly into the living area with an 8m wrap-around countertop, curving around to conceal the bathroom entrance beyond.

Once the kitchen, now the bedroom, the darkest corner of the apartment is tucked beneath a timber nook for warmth with an additional noise barrier from the nearby train line.

A custom-designed credenza doubles as a TV cabinet and built-in dining bench, with storage tucked beneath the seating.

A bespoke drop-leaf table folds out for dining and collapses into a desk – converting between the two depending on the need.

5. Timber-Lined Brunswick Apartment with Flexible Open Plan Layout, 42sqm/452sqft

In a 1970s apartment block in the inner-city suburb of Brunswick is Park Street. A 42sqm/452sqft apartment renovated by owner and urban planner Alex Antoniadis — also a lover of postwar architecture. This became the main aesthetic and intention for the renovation, just with an innovative edge. To maximise light and space, the internal wall between the kitchen and living area was removed, while custom birch plywood cabinetry lines the kitchen, including a retractable dining and work table that tucks away entirely when not needed. Locally sourced terrazzo tiles, mosaic details and timber panelling carry the postwar palette throughout, while the original popcorn ceiling keeps the original home Alex loves very much present.

Find out more details about Park Street in this full article, including imagery from Nam Tran, and the full video tour https://www.nevertoosmall.com/post/park-street-brunswick-melbourne