The Taikoo Shing estate was once the site of Taikoo Dockyard, whose foundation stone now lies beside Cityplaza. The dockyard moved to United Dockyards at the west shore of the Tsing Yi Island in late 1970s, and Taikoo Shing was constructed over the site in stages, with constructions of all main residential buildings complete by the early 1990s.

As part of the business strategy, Swire Properties was established in 1972 immediately after the closing of the dockyard. Taikoo Shing became one of Hong Kong's first major private housing estates. Completing in 1986, Swire immediately became one of the largest property companies doing the construction themselves. The area was designed to maximise middle-class residential capacity.

More than 60,000 people live in Taikoo Shing, a moderately concentrated area by Hong Kong standards. Apartment flats in Taikoo Shing are popular amongst buyers and speculators, and for a significant time in the 80's and 90's, Taikoo Shing's housing price is a general indicator of the of Hong Kong's housing market health in general. Although in recent years, newer housing developments have eroded a bit of Taikoo Shing's once prominent status.

The estate is also a very sought-after place to live for the Japanese and Korean expatriate communities in Hong Kong, most of which are staffed in multinational corporations based in Hong Kong. As a result of this significant Korean and Japanese settlement, the area has many Korean and Japanese-themed service establishments.