This paper aims to discuss the spatial characteristic of “Liyuan” building and its transformation in Dabaodao area, Qingdao, China. “Liyuan” is the unique style multiple dwelling house developed for Chinese residents during the colonial period in Qingdao. Historical documents of building confirmation application preserved at Qingdao City Construction Archives and field survey data were analyzed. Then the collective form patterns and the plan types of Liyuan buildings were classified and their characteristics were discussed. Spatial transformation of Liyuan buildings were also clarified and its reason is considered to be the mass inflow of migrant workers from the countryside after 1980s.