In 1884, the Qing dynasty governor of Taiwan, Liu Mingchuan, decided to move the prefecture capital to Taipei, and with the construction of government offices and the influx of civil servants, Taipei's days as a sleepy market town were over. Taipei remained the provincial capital when Taiwan was granted provincial status in 1885. As Taipei is in the north of Taiwan (the closest area to Japan), the city continued to thrive when Taiwan was ceded to Japan in 1895. However, as Japan was in the throes of a 'modernize-come-what-may' period, little regard was paid to Taipei's traditional Chinese-style architecture and many of the old buildings, including the city walls, were demolished. On the other hand, several European-style buildings were constructed by the Japanese rulers - the Presidential Palace and National Taiwan University being among the most famous. The city's architecture, however, suffered another major onslaught when the KMT government arrived from mainland China in 1945.

To cope with the influx of millions of mainland refugees, temporary housing estates sprang up all around the city. Later, these were replaced by Soviet-era style (or 'no-style') concrete apartment buildings. These buildings characterized Taipei's landscape until very recently.

In the 1980s, Taiwan's economy began to take off. Wages increased and in order to satisfy a wealthy and sophisticated market, Taipei began to change. Wide, tree lined boulevards were laid, high quality apartment blocks constructed and stylish restaurants and cafes established. The city was booming and has never looked back since.

The Taipei of today is a confident city of about 2.5 million inhabitants (about seven million including suburbs), and is characterized by its friendly people and safe streets. While it is not usually high on the list of tourist destinations, it is a fascinating place to visit and live. Furthermore, despite its size, Taipei does not have any rough areas that are considered unsafe, even at night - which in itself is attractive.

The downtown area is culturally divided into East and West. The West side, with its narrow streets and road side vendors, is considered the bastion of old Taipei life, whereas East Taipei, with its classy malls, chic boutiques, and stylish restaurants and cafes, reminiscent of those found in Tokyo, Paris or New York represents the city's metamorphosis into a modern and international city.