There is a misconception amongst people who are new to Qingdao who think they can find a palace for a cheap price.

Actually, rents in Qingdao are quite high compared to most small cities in China . They can almost be comparable to that of Shanghai , depending on the location. Generally, prices are the highest near the shoreline and then go down as you move northwards. Downtown apartments with a full sea view are in great demand and in very short supply so spaces in this area are very expensive. For example a house in this area that is 100sqm can be as much as US$1000 a month! Prices are determined by location, view, decorative style and of course the buildings' age.

But don't get frightened, there are many cheaper residences as well. You can find a place for 1000-2000 RMB but don't expect anything great. A good budget for a decent, comfortable apartment (100sqm)is about RMB2000 to 3000 per month. In this range, you won't have everything you want, but you'll be quite comfortable. Of course, some are able to find a great deal, but most people don't have the time to wait for that great deal.