size doesn't nececarily play a role for a settlement to be considered a town, there are towns smaller than villages and the other way around. what matters is importance and being a regional center. Same as villages, they might be only a few houses but still considered villages. In Faroe islands, a municipality with over 1500 inhabitants can call themselves a býur = town  (https://logir.fo/Logtingslog/87-fra-17-05-2000-um-kommunustyri-kommunustyrislogin-sum-broytt-vid-logtingslog-nr-71-fra-6 §4), but also only Tórshavn, Klaksvík, Tvøroyri and Fuglafjørður are called býur commonly. 