With the urban renovations in the 1980s, Taipei's center of development gradually shifted to the East District. Coupled with the emergence of night markets in Shihlin and Kungguan, the market in the Circle shrank and the business and bustle were a mere shadow of the past.
1980 年代，隨著都市更新，台北市發展重心逐漸轉移到東區，加上士林、公館等夜市興起，圓環夜市規模縮小，商業功能及活動強度日漸萎縮，繁華不再，最後由市府接手規劃重建。