In January 1925, Huang Tsan-chun, Chen Pei-ken and Koo Hsien-jung, three members of the Taipei gentry, joined forces and invited about 200 officials, gentry, and businessmen to a discussion meeting to decide how to collect donations. In February, the Taipei Confucius Temple Construction Preparation Office was established to handle all matters regarding fund-raising and construction. At last, after ten years, the Taipei Confucius Temple was to be rebuilt. In March, Chen Pei-ken donated 72,000 square feet of farm land, Koo Hsien-jung bought and donated 36,000 square feet of land, and the preparation office used the collected donations to buy another 36,000 square feet of land. This total of more than 180,000 square feet of land was to be the site for the new Confucius Temple.

After the problems with land and finances were solved, the next step was to find an architect. At that time, no one in Taiwan had much experience in building Confucius temples; therefore they decided to hire someone from the mainland. Back in 1920, famous craftsman Wang Yi-shun came to Taipei to repair the Lungshan temple, Mengchia Temples and the city God Temple. His designs were widely admired, and so they decided to hire him as the chief engineer for the Confucius Temple, to be responsible for design and construction.

Wang Yi-shun was from Xiti Village, Huian County, Quan Zhou, and was the most famous carpenter during the late Qing Dynasty, known for building temples in Fu Jian Province. He took many of the best features of Southern Chinese architecture and displayed them in the Taipei Confucius Temple. Thus, the Taipei Confucius Temple can be described as a typical example of Southern Fu Jianese architecture.

At the beginning of the construction, a professional was hired to check on the geomancy of the site. Construction began in 1927, and in April 1928 a ceremony was held for laying the main beam of the Da Cheng Temple, and work began on the Yi Gate. By 1930, the Chong Sheng Shrine, theYi Gate and the two small rooms to the east and west of the main building were already completed, as was the carving of the tablets of the ancient saints and sages. On August 27, 1930, Confucius birthday was celebrated in Taipei for the first time in over thirty years.