I found that size of house to be pretty great.
Then we found out we were having twins. Now we live in a 1200sqft townhouse, which is also pretty nice.
It seems plenty big for what we need. The thing that always amuses me is that all our relatives are wondering when we'll move into a "real" house. Apparently this one is just a "starter" and too small for longer term living in their eyes.
We just bought a 52 square meter house, but we did it cash - no mortgage (just took the deposit we'd saved for a city home and looked outside the city instead). That's worth more to me than a lot of space. Though I might be cheating because there are some outbuildings which can hold washer/dryer and tools, etc.
The key in our situation is we went for a townhouse, which for whatever reason seems to knock 30-50% off the asking price. I guess people really don't like stairs and living immediately next to people.
I love living next to good neighbours. It's tough to know what you're going to get before moving in, though.
A lot of it comes off similarly to the dentist I had once who told me I needed to get my wisdom teeth removed immediately because getting them removed when I'm 70 would be much more of an issue.
There is a lot of time between now and then, and I think it makes more sense to prioritize my current needs and keep my options open than to prematurely decide what I will want in ten or fifteen years.
Folks who grew up in the country with wide open spaces feel claustrophobic in small spaces.
City people are happy with 400-600 sqft/person. It's an exercise in minimalism and frugality.
If you tried to fit two couches and three chairs into our living room like my parents have, it wouldn't work.
We also don't have a "kitchen table" and a "dining room table" like my parents do.
Yes, we'd probably have a hard time hosting 30 people for a holiday, but that seems like an odd standard to base your home purchase around.
My wife and I made several house (and furniture) purchase decisions based off this. Big families like to have big parties in family settings - it's an important feature of the house for us.
We've made do in ~300 square feet in the past, and just didn't enjoy the compromises on comfort and the constant extra effort to keep the space livable.
It's incredible what a difference no furniture makes. It's very hard to entertain non-Japanese people, though... I've got some folding camping chairs in the closet, so it's very "rustic" at those times. It also took me a long time to get flexible enough to sit on the floor all the time! But it's good for your body.
I'm not going to suggest this is a solution for most people :-) I have been surprised at how much I enjoy it, though. I find it very comfortable and it's nice that the rooms are big, open and uncluttered (even though they are very small -- our entire apartment consists of 3 rooms, two of which are about 150 square feet and the other is about 120 square feet (that excludes the bathroom, toilet and entrance, so I guess the entire apartment is about 550 square feet?)
The major problem I have with such a small space is that I need more storage room (especially in the kitchen). I've lived in a house that was just a bit bigger than this (probably on the order of 700 square feet) and it was just perfect for me. Unfortunately, in our small town, there was literally nothing that big available when we were looking so we ended up with this.
When I lived in Canada, I had owned a huge house: something like 3000 square feet, with 3 bathrooms. My kitchen was probably half the size of the apartment I live in now :-). It was full of furniture: I had a sitting room with couches and chairs, a dining room with dining table, cabinets, etc, another living room with more couches and chairs, and 3 furnished bedrooms. I was single at the time and had to invite friends to come and live with me -- it was like living in a mansion. What a lot of work! I never had time to enjoy it.
It's weird how your idea of luxury can change :-) I literally can't even imagine living in that old house any more.
I would joke with my parents "why is it called a living room when we can't live in it"
For context, TV at that time meant a handful of channels received over the air, and a "big" screen was 19 inches.
I guess I've kept a similar pattern. My TV is in a little dedicated TV room. I have another wall-mounted TV but it's mostly just a big digital picture frame. [ADDED: I watch TV/movies but I don't really like to mix it in with other activities for the most part.]
Some of the reason behind is separation of concerns strangely enough. I work from home, we live in a 1 bedroom apartment, and I felt really stressed whenever I would play video game or watch TV while still in the very same space I worked all day. I was basically doing everything in the same 10sqft all day every day. Now, because it's in another room, I feel way more relaxed.
Another plus is now I get the sun up right in front of me from bed every morning and that's just an awesome feeling I didn't get from the bedroom. I believe the bedroom should be oriented south east to get that morning sunshine to wake you up, and we didn't get that before.