It would probably be dictated by the television/streaming platforms electrical points, power points etc etc. Are the electrical points required for your chosen viewing able to be installed on the shared wall? If not, then set out of furniture and TV would be as shown on plans. If it doesn’t matter about power points, then ask questions. Do you want to watch people going to the toilet room while sitting on the couch? Do you want to watch tv while working at the sink? Do you want to watch tv while sitting at the island? Only you know the answers to these questions.

You'd be better to flip it over so the kitchen extends into a TV/entertainment wall and you put a chaise lounge next to the the pantry where the tv currently is.... But I'd suggest possibly reconsidering the living and dining positions and swapping - it would arguably work much better if you made the dining into the living with wall mounted TV on the passage /party wall side and put the dining to the rear together with the kitchen, however you may have your reasons for the proposed setup so totally depends upon how you live and your living/family dynamics/set-up and needs...but it feels like it could be done better so it doesn;t feel so crammed and bottlenecked as you're walking straight into the island bench. For these tightly constrained scenarios would work better spatially if you considered a long one-wall streamlined kitchen setup stretching all the way say from the stair to the rear doors and doing away with the island and have a nice dining table as the central feature to the rear space...this would take the attention away from the tight site scenario and make it feel way more spacious....attached a plan of something we did a while back for a similar scenario and example inspo..

Just a few thoughts - PD :)

www.pauldistefanodesign.com

thank you both for your inputs. its an extension to a terrace and i have yet to build the back part, but i need to rough in electrical etc so trying to firm up the locations. thanks Paul, we will likely flip the dining and living rooms but from a resale perspective i would like to have roughed in a living room possibility, hence the question on layout.

does that mean you will have two living rooms at the front in original part of the terrace?

People traversing to the lounge and outside are going to walk on the stool side of the island as drawn so be mindful of that. Also be careful where the sliding doors stack/open to. You want to match the walking path. I’d seriously rethink the powder room layout - a bit more separation is needed.

I can't read all the dimensions but I think I read the powder room as 1500 which appears to be out of scale with the toilet?, as above the powder room needs rethinking, as it is within the kitchen space plus has a sliding door which isn't the best choice for privacy/sound.

What is the original floorplan before the extension

Do you want to see tv while preparing meals? Ideal as is gor that and encouraging walking around back of island Living at back of house with northern light and garden view my vote too. For powder room at a door to kitchen next to fridge and delete door to dining just leave full height opening as wide as reasonable.

@Michael B whilst it's good to cover your bases/build in flexibility, it's recommended to design for your own needs primarily as opposed trying to be everything to everyone, particularly for smaller scenarios and the trick for these is to make it feel bigger than it really is, which all comes down to management of joinery and furniture and flow/clearances .....my advice typically is that if it's a flip you best present/sell a very clear vision/setup that is definitive/unambiguous.......good design and layout that is defined and unquestionable in terms of function will trump an awkward albeit kinda flexible/middle of the road alternative. Design the space with confidence so when you walk in it immediately gives the impressions/message of "this is how we live/use this area"....typically you'll find most buyers find it hard to visualise and why staging and carefully selected furniture is so important....and why also I bang on about driving a design process starting with furniture and joinery and then developing walls,doors etc around the function of a space, rather than doing the other way around......Great opportunity here, these little scenarios can often be full of creative potential and interesting solutions and capacity to get into the fine details....best of luck with it & enjoy! PD