I looked at a studio apartment where the owner had pull out drawers under the bed that went all the way back to the wall so all the space under the bed can be used for storage. Think trundle bed but drawers slide out instead.
Here are some ideas. A bit random.
Some topics have more than once concept because I am not saying any will specifically fit Kathryn or Tikor but they may help others even for kid's rooms....
TV watching;
Wall mount tv/video/dvd so you do not need a devoted piece of furniture taking up floor space. Place so it can be seen from bed and kitchen (aaand possibly the bathroom
)
Eating;
Bench and barstools instead of dining set. Like one would sit at bfast bar.
Coffee table and lounge instead of dining set
Fold down 1/2 dining table you can push against wall or pull out and use. But is it necessary if you are not entertaining? If you are happy to picnic off the coffee table or dine Middle Eastern/Japanese style then think of coffee table/lounge option.
Sleeping;
Ikea has queen size beds that are elevated and space underneath can have desk etc. Often in college dorms.
Sitting;
Instead of one large 3 seater get two separate armchairs. Can be moved about and take less room. Footstools can be used for additional seating at a pinch.
Lounge or chairs that do not go all way to floor will give feeling of space. Solid pieces will seem larger since you can't see the tiles/flooring and so the space will seem more packed in.
Kitchen;
Ensure all items have more than one use (frypan can be used as wok but not necessarily vice versa, pressure cooker comes with conventional lid also)
No toaster. It takes up bench space. Use the grill in the stove instead.
Microwave on bracket on wall.
Store pots/wok in oven when it is not in use.
Dishwasher, is it necessary since one is unlikely to be entertaining in a studio apt but if it is a must then The Good Guys had one that was approx $500 and fits on the benchtop.
Misc;
Hooks on back of doors/inside pantry
Linen press, who says one can't put kitchen things in there?
Bathroom cabinets. If you are very clever the cleaning stuff from under the kitchen sink can go in here and the kitchen cupboards are freed up for other stuff.
Lighting - does make a diff.
Mirror opp window
Lots of small pics on wall will make things look cluttered. Go for one large print or framed memorabilia or wall mounted vintage kimono (whatever is your style, you get the idea)
Pinboard inside pantry/linen press/back of laundry door. Magnets and papers all over fridge makes the place look cluttered.