In many new estates, such as in Tullimbar, lot sizes are between 250 and 400 square metres. 

Meantime rising property prices are forcing many to choose the cheaper priced townhouses and apartments.

However just because something is small doesn’t mean it has to feel like a shoebox.

Bulli building designer Alex Urena said it’s not as challenging as people think, it just requires planning.

He said too often people believe building their house across every possible square metre permissible will give them the space they need.

“As an end result you have a house that’s ... right up against the neighbours with no back yard,” Mr Urena said.

Mr Urena suggested working “big interconnected spaces” into the layout so there are not many dividing walls inside that will make it look dark and small. This can work for both units and houses.

Knocking out a wall to create large openings and big windows to bring in natural light will give the illusion the inside of a home is bigger.

Kitchens opening out to a balcony or decking make it look at least twice as big.

“If you have the right insulation, good cross ventilation, [heating and cooling] shouldn’t be a problem,” he said.

The designer also likes to to utilize every area of the house rather than have corridors or voids that serve no purpose.

“A corridor is not just a corridor, sometimes you can fit in a study nook in a clever way ... so don’t lose space, it’s all usable,” Mr Urena said.

“Next to the hall have living areas that could be open plan and the house feels larger straight away.”

For smaller enclosed spaces, like bedrooms and bathrooms, use lighter colours on the walls and in furnishings because it will give the appearance of more space.

“I would try to avoid darker ceilings … because it will make the house look a lot more compressed,” he said.

Features walls are to be kept to a minimum of one wall per room with the rest using a light colour.

Building designer Alex Urena had just 375 square metres of land on a corner block to work with for a new build in Thirroul’s McCauleys estate (see photo gallery).

He cleverly created a spacious three-bedroom, double-storey home with indoor and outdoor living spaces.

The home also includes a double garage, large office and waiting room, rumpus room and yoga area.

Mr Urena said being a corner block added extra challenges due to regulations regarding how far a house can be from the side of a road.

“You have have six metres on a main road and three metres on the side street, so the area you have usable for the house is a lot smaller.”

A lap pool and garden was incorporated to overcame the constraints while adding value to the property.

Mr Urena is a big advocate for putting stairs near a hallway to turn a void into a high ceiling to make an area seem larger.

While the living areas on the top floor face north to ensure the best natural light and views of the ocean and escarpment.

* Award-winning Bulli home

* Grannyflats are the future