Hi MrsSmith76, Think about cheating space by making elements do double duty. If you could combine your kitchen bench and dining table ([dining/bench 1[(https://www.houzz.com.au/photos/north-bondi-project-contemporary-dining-room-sydney-phvw-vp~1844895) or [dining/bench 2[(https://www.houzz.com.au/photos/open-plan-kitchen-contemporary-kitchen-sydney-phvw-vp~1440883)) so that the kitchen benchtop and table can serve double duty - extra workspace when you need it, dining when you want it and the potential for using both spaces in a buffet set up when you've got crowds of people. This might allow you to squeeze a cozy lounge area. I've seen bench/table set ups with leaves that you can extend out as well which might be worth thinking about. Also remember that to minimize the amount of kitchen you're going to pinch from other areas you will want to look at maximizing the functionality - think [kickboard drawers[(https://www.houzz.com.au/photos/modern-kitchen-modern-kitchen-sydney-phvw-vp~2873549), [narrow cabinet pull outs[(https://www.houzz.com.au/photos/rockwood-colonial-larchmont-traditional-new-york-phvw-vp~25775360), [overhead cabinets to the ceiling[(https://www.houzz.com.au/photos/lg-house-kitchen-contemporary-kitchen-edmonton-phvw-vp~454930). Good luck.

Thank you for all the replies and suggestions. Although the kitchen, dining and the entry area at large would benefit from moving the bedroom door inside, I tend to agree that the privacy and function suffer more from a bedroom door within the lounge. I was suggested elsewhere to widen the lounge entrance and remove its door thus making the layout more open and "modern". I think this would not help, though, with the door positioning problem - either way. Bigreader, bedroom 2 = top room on the layout? It can be used as a spare bedroom but it is surrounded with shutters and large windows. I think It better suited for leisure or as a work space. Oklouise, thank you for the effort in redrawing the layout and experimenting with it. The suggestion for exchanging the hinges direction is spot on. The bathroom is not built yet. I am considering replacing the bath with a partly open shower:

Thanks for all your replies and feedback. I haven't provided a lot more detail as the location of the kitchen/living areas go will dictate how the rest of the layout flows. This is going to be our forever home. We do not have children yet but planning to start a family soon. We are definitely relocating the stairs to the side of the property regardless as its current location is not really optimal. Louiab's point about losing that connection from the living areas to the garden is what we are concerned about, hence one of the option is to just open up the ground floor, keeping the kitchen and living downstairs and having bedrooms on the first floor. A third option would be have a formal living area at the rear of the first floor and have stairs connecting down to the kitchen and courtyard. That way, we can open up the ground floor to the courtyard and still keep the city skyline view in a common area.

Good suggestions from Kate. I would also suggest the following. Remove the kitchen pass through wall completely and install a peninsula bench. A support beam may be required. Or a support pillar which could be incorporated at end of the bench. Install a 2400mm high solid core sliding door, think barn style, for the bathroom door. This will give a bit more sound proofing for the poor people using your toilet in the dining room. Place the lounge furniture so the corridor is along the wall. Using single accent chairs. All dining and lounge furniture should be light in colour. The furniture in the photos is dark and bulky and sucking the light out of the room. Paint the stairs completely in a light colour. You have not mentioned a budget, so these changes are cosmetic more than structural (apart from the pass through wall)