In the urban development process, it remains a controversial question in planning theory of whether planning and markets conflict or complement to each other. Planning can be viewed as gathering information to reduce uncertainties in order to make decisions, whereas markets can be considered as cooperative processes to induce transaction order derived from myopic, spontaneous exchanges among agents. The present paper considers the distinction between planning and markets as related to delineation of economic property rights, and such a delineation is determined by the transaction cost caused by institutional designs. Through economic analysis of property rights to explain the conflict between planning and markets, the present paper examines the implementation performance of the delineation of urban renewal areas by the Taipei city government and reviews the dilemma of the development of such areas and possible improvement strategies.