Built in 1908 during the Japanese rule of Taiwan, the Red House is a Western-style brick structure designed by Japanese architect Kondo Juro. The Red House was one of the earliest public markets built by the government in Taiwan, also the oldest and complete municipal monument market building preserved on the island today. Its market entrance, which was designed according to the concept of Eight Trigrams (bagua, 八卦), was considered an innovation at the time of its construction.
Following the retrocession of Taiwan after World War II, a large portion of mainland Chinese communities, who followed the Nationalist government to settle in Taiwan after the Communist takeover of mainland China, found comfort in Beijing opera, talk shows and dramas staged at the Red House Theater, giving rise to the Red House's glorious days. The Red House was designated as a Class III historic site by the Taipei City Government in 1997, but the Red House Theater was closed down later that year.
In November 2007, the Department of Cultural Affairs under the Taipei City government commissioned the Taipei Culture Foundation to manage the Red House. Recently, the Red House has been developed into a venue for designers to showcase their creativity and exchange information.