Suburbs where small homes with clever design are making millions in profit

When home buyer David Ryan purchased a tiny and well-lived-in pre-war cottage in the inner-city suburb of Milton in Brisbane in 2012 for $515,000, he had no idea just what lay ahead for the tiny residence.

Sitting on a footprint of just 253 square metres, Ryan says the purchase was driven by a desire to escape the renting circuit.

"I was a junior trainee doctor at the time and was at the end of my tether with renting. I came across this old cottage that had been rented out. I bought it at a good time when prices were dipping a bit and lived in it as it was for a few years," he said.

By 2017, he was ready to start exploring how he could transform the tired cottage at 24 High Street into a modern, light-filled space that utilised every inch of its small footprint.

He was referred to acclaimed architecture group Lineburg Wang, who worked closely with Ryan to create a space that felt generous despite the confines of the site.

The result is an award-winning residence that maintains its modest colonial facade, and intimate private quarters, consisting of two updated bedrooms, before unfolding into a split-level, living and kitchen area, with a pavilion-like feature room that is void of any fixed walls or imposing cabinetry, allowing for flexibility and openness.

The space, with soaring 3.85m ceilings and skylights, features robust brickwork, pale joinery, and a palette of warm neutrals to establish a serene backdrop for everyday living and entertaining.

The existing home was moved forward to enable an extension of the living area, which opens seamlessly to a private open-air courtyard via full width sliding glazing, a gesture that extends the living area outward while embracing Brisbane's sub-tropical climate.

Ryan, who has been living in the home with his partner and two children, says one of the primary focuses of the renovation was to craft a space for entertaining.

"We are so happy with the result. It's a stunning, minimalist home and we can easily open up the external doors and have 12 guests over, which just sounds like a ridiculous concept when you're living in a two-bedroom house," he laughs.

Bespoke home expected to fetch offers of $2m-plus

Listing agent Heath Williams from Place New Farm says the bespoke home has already generated a lot of interest amongst buyers looking for a contemporary, architect-designed, inner-city home.

The home is price guided at $2 million-plus with offers accepted until July 8 at 5pm.

"The home feels incredibly generous and the living areas, in particular, feel like they belong to a much bigger house," he said.

"It comes down to the fact that every inch of the home has been so thoughtfully executed. When you work with a smaller space everything just has to work a lot harder and in this case the architects have thought of everything," Williams said.

"Even the pantry cupboards open inwards so as not to block the walkway. It is these details that create the overall quality and feel of the home."

Soaring ceilings and skylights create space in North Newtown

In Newtown, in Sydney's inner-west, clever use of light and design elements, such as wall to wall skylights, soaring cathedral ceilings and clean lines, create a seamless flow that makes this tiny workers cottage at 37 Brown Street feel much larger than its 126 square-metre footprint.

The architect-renovated home also features an indoor/outdoor living area which further enhances the sense of space in this tiny terrace in the heart of North Newtown village.

The three-bedroom, two-bathroom home is listed for sale by Shaun Stoker from Ray White Surry Hills and will go to auction on July 19 at 9am.

Quaint Victorian cottage gets a mighty makeover

Meanwhile, in Abbotsford in Melbourne's inner north-east, another tiny cottage is punching well above its size, at just 124 square metres.

The two-bedroom, two-bathroom, Victorian single-fronted home at 36 Lithgow Street has undergone a stunning renovation that has transformed the residence into an airy, light-filled space that feels much bigger than it really is.

Adding to the flow of the home are minimalist finishes, generous skylights, an open-plan kitchen area and bi-fold doors and servery windows which open to the private bliss of a landscaped garden courtyard - home to a sunny studio which can be used flexibly for study or sleeping.

The surprise packet of a home is listed for sale by Jack Zhang at VicProp with a price guide of $1.2 - $1.28 million.