I live in a studio apartment in Wellington.
It is all brand new and clean, and there is an added bonus of big windows that allow the morning sunlight to stream in. I am not fussed with the size (which is really small), and I know that small spaces can look great too. However, it is really important to make sure that the place does not look cluttered and messy. I brought quite a lot of things here, and I have been making the effort to downsize. This includes selling off some of my craft materials, fabric and books :(. It is also taking a lot of effort to refrain from buying more clothes!
Here are some examples of small and cute houses on Pinterest:
Tiny and rugged :).
Love the wooden partition