Built in 1900, the main body is a two-story building with European characteristics, equipped with an attic and a basement. It was originally the residence of German expatriates. During World War II, it served as the only foreign consulate in Qingdao. In 1945, the consulate was abolished by the Japanese authorities and restored to a residence.

In 1947, Kong Xiangmian (the younger brother of Kong Xiangxi, who was then the general manager of Qingdao Industrial Bank and the chairman of the Bankers Association), the 75th-generation descendant of Confucius, bought this residence for himself and his family to live in and named it "Nanyuan". In 1986, Kong Lingren, the daughter of Kong Xiangmian and a professor at Shandong University, donated this property to the Qingdao Municipal Government, and it was then turned into the "Confucius Memorial Hall in Nanyuan".