The paper discusses the establishment process of the complex building with residence in Dairen in the first half of the 20th century, focusing on advocacies and proposals, particularly two design competitions centered on complex building with residence during the incipient construction period. It classifies the prototype of these buildings as the ‘dwelling buildings’ constructed in the early 1920s on the Shinano-machi Street, which firmly established themselves and spread throughout the urban area of Dairen. The study shows that these buildings are related to urban development methodologies. Additionally, those buildings were commercialized as a part of modern commercial activities.