Apartments of this size are typical in Japan, and also do not come at a reduced cost. There, however, one can buy miniaturized appliances (refrigerators, dishwashers, laundry) which do not cause one to sacrifice having those 'luxuries'.
Hell, you could get a bigger place for much LESS. My friend just rented a brand new place in Shibuya for 95000 a month, with beautiful interior, entryway, super-modern shower/bath, gas range, ample space for a proper washing machine, and the main living space is separated from everything else by a heavy door. The whole building is built from such heavy concrete that there is no worry about bothering/being bothered by the neighbors.
This is utterly standard. I hope some day soon the US figures out how to build similarly awesome but affordable buildings.