There are 2 options of floor plans that we would like to propose:
(1) Option A: is to have a private sleeping pod (built-in) where you can easily slide the panels to open the space for daily use (so it will merge into the living area) or close it off in the event of having guests coming over or if you want to cook in the kitchen. This sleeping pod is made of timber panels (e.g. MDF, laminate or solid wood depends on the budget) where you can have built-in closets/storage and wardrobes as well. Optionally, you can build a hidden storage under the bed too. laundry room is hidden in one of the closet next to dining. This layout offers a spacious living area facing the terrace, private and cozy sleeping area, ample of storage, as well as maintaining the position of existing bathroom and kitchen. In this case, we propose to have a round table dining that can flexibly have 4-6 seats whenever needed. You can use the dining table as a working desk too. People can also see/watch TV from all corner (even from the bed).
(2) Option B: is the option without a private sleeping pod. In this case, kitchen is moved nearer to bathroom (wet areas are close with each other), and you can have an option to have an island-type table with this layout. There is a double sliding door that divides kitchen and living area. In this case, the bed is made of loose furniture that you place next to the living area. The whole area can be an open space entity if you open up the sliding doors.
Option A is guest-friendly and priority privacy of the sleeping area. You can convert the kitchen-dining-living room as entertaining zone when guests are coming. While, Option B is designed with a perception that it will be a totally private studio, so the division is made based on functionality (wet and kitchen area at one corner, living and sleeping at the other side).
The 3D rendering we made is for Option A to explain the concept of sleeping pod.
Regarding the bathroom, we re-organize the space so the room would seem larger and can accommodate a shower/bath tub combo. If you prefer without the bath tub, it can be a normal shower area but larger than the original one. Also, in this layout, people won't see the closet directly from the door, but seeing the tub/shower instead.
Thank you so much for the opportunity to participate in your contest, looking forward to hearing you feedback and all the best with your home project.