It's probably because Paris, officially, is the very small hypercenter of the Parisian metropolitan area. Whereas Tokyo is the actual total metropolis. Just look up the population of both. Paris is 2 millions whereas Tokyo is 14 millions. If you were to consider the whole Paris metropolitan area then the population is 11 millions.
Yes but the average size of a flat in Paris would be shocking to an American.
500 square feet for a couple is standard (that would be seen as a small appartment in the USA) and living in 300 square feet or less is fairly common for someone single.