In the Treaty of Shimonoseki , the Qing government cede Taiwan to Japan.During the Japanese occupation, most commercial enterprises were centered in the Wanhua and Dadaocheng districts. After the Treaty of Shimonoseki, the Japanese took control of the island, and dismantled the Taipei city wall to create the main thoroughfare, aqueduct and other buildings that came to symbolize Japanese rule. At this time, Ximending was the where most Japanese lived, with Red House serving as a market for them. With the importing of Japanese culture, it became a place where Japanese could find the comforts of home, and where Taiwanese could find the latest fashions.

Finished in 1908, Red House consisted of the One-six Pavilion Restaurant upstairs and shops that sold high-quality Western goods, deserts, toys, stationery, makeup, shoes and umbrellas downstairs, all of which were managed by Japanese. The Cross Building also sold fruits, fruits, vegetables and meat. According to Ms. Huang-Cai Yuluan, who worked at Red House for many years, the Japanese never bargained when buying goods, and lots of money was made. The 16-square-meter stall run by the Cai family, which sold fruits, vegetables and assorted goods, earned enough to support seven households.

台灣書籍文獻均見西門紅樓（原稱西門市場八角堂）設計者為時任職於台灣總督府官房營繕課的近藤十郎。近年日本建築師松崎萬長之後人來臺拜訪台灣古蹟學者李乾朗、學者黃俊銘及曾任職日據時代協志營造廠的廖欽福先生的後代，試圖舉證說明，西門市場之建築為其先人與近藤十郎所共同設計。

近藤十郎師事英籍建築師Josiah Conder，於1906年抵臺任職於總督府官房營繕課，並於1907年負責設計台北西門市場及彩票局，同時期也可能設計大稻埕市場及台灣日日新報社。1910年設計第一中學(今建國中學)；1911年設計基隆郵局；1916年設計台大醫院舊館，是其巔峰之作。松崎萬長(1858～1921)為留學德國之建築師，日本建築學會創立者之一，在臺任職於總督府鐵道部，重要作品有基隆車站、鐵道飯店、新竹車站等，皆獲很高評價。但日據初期在臺灣的日人建築師以追隨英國風格為主流，故松崎萬長的記載多有所忽略。依日本建築學會所發表的專刊特別指出：「西門市場的八角形狀是近藤十郎的作品中少見的簡潔、粗獷豪邁具決斷力的設計，正是松崎萬長特有的手法。」

第一賣店設立。 黃永銓提供	西門市場外觀落成。 謝明書提供	西門市場外觀。 萬華區公所提供