Taiwan has experienced rapid economic and urban growth over the past half century, but in the 21st century it faces the challenge of zero population growth and aging. It is necessary to shift from the past policy of continuous urban expansion to a policy of urban renewal that focuses on the city center. In order to address the need for functional transformation, improved building and environmental quality in the city center, the Urban Renewal Act was announced on November 11, 1998, ushering in a new era of urban development in Taiwan.

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Urban renewal is a necessary and inevitable direction for urban development in 21st century Taiwan. Urban renewal is not just about replacing old houses with new ones, nor about revitalizing the real estate market and providing volume incentives. It is a public interest project that responds to the changes in the new generation's society, economy, transportation, urban and regional structures.