The house, which was designed to be furnished with Ikea furniture, was created to provide an affordable option for young people who can’t afford to break into the housing market in Australia.
Starting at $110,000, all profits from the prefabricated homes go to Kids Under Cover, which aims to prevent homeless youth in Australia.
"We'd been following the tiny house movement for quite a while, and we wanted to produce something that had a bit of a different offering," Tim Angus, associate at Grimshaw's Melbourne office, told Dezeen.
"Typical tiny houses are seriously tiny and essentially a studio space, like a developed caravan. What we were looking to provide was more of a liveable, high quality piece of design with a small size and at an affordable price point."
The architects used Ikea module dimensions to measure the interior layout, so owners have an affordable option for customising their kitchen, bedroom and bathroom.
"It's making quality design attainable, it's not a luxury that people can't afford any more," continued Angus.
"We think its really exciting because it addresses affordability, and addresses housing density," said Angus.
"You can imagine it in the backyard of an existing house, but you can imagine tiny house subdivisions and the design of tiny communities. We're really keen to explore how we'd design new neighbourhoods around tiny houses," he added. "It does solve so many really big issues."
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