Banks in Australia typically prefer to finance units of more than
500 sq ft, as the unit acts as security for the loan. This precludes individual ownership of these types of units for the very people who would want to occupy them. However, there is a definite trend towards smaller and smaller units as a way to shift affordable property onto the market.

Queensland has the right climate for these very small units, to which generous outside areas (balconies or courtyards) can be added, without falling foul of the GFA restrictions. Many more small-unit developments are expected on the market, in an effort to combat diminishing affordability, and eventually banks may have to review their stance on financing small studios and one-bedroom apartments.

Taken from
Spotlight: Shoebox units - Is smaller smart or is bigger better?