According to statistics provided by Yu, 100 million sq m of old buildings in Shanghai were torn down between the early 1990s and 2008 to make way for modern ones.

However, the Shanghai government has also been striving to preserve traditional architecture, turning many old estates into zones for creative industries.

The 1933 Shanghai complex is one such example. Formerly a slaughterhouse, the place is now home to several creative agencies and design studios.

According to statistics from the municipal government, there were 87 zones hosting creative industries and 52 parks for cultural industries at the end of 2013.

Following this incident, Zheng realized that the residents from neighboring lanes needed to band together to help expand the size of Tianzifang in order to boost the significance of the area.

Renovation works were also planned to give the rustic zone a new lease of life.

"This led to a new shift from the residential to non-residential use of space in Tianzifang and the local residents were quick to join the effort," said Zheng.

Zhou Xinliang was one of the first residents to lend support. In September 2004, he leased his 33-sq-m room on Lane 210 to a fashion designer.

However, he said that he had done so only because the 3,500 yuan ($540) he charged for rent would go a long way in helping with his living expenses — he was only getting 300 yuan every month from his retirement pension.

"At the beginning, I didn't really mean to make a contribution to the effort. But as time passed, I began to realize the importance of protecting the origins of the place," said Zhou.

In the past decade, more than 500 households have followed in Zhou's footsteps to convert their houses to non-residential units.

While the interiors of many of the buildings have since been renovated and given a new coat of paint, the old brick facades from which Tianzifang gets it charm, are still very much intact.

The facelift was a success and Tianzifang was buzzing with activity. Middle-aged housewives carrying bags of vegetables would squeeze past expats sipping cappuccino at outdoor cafes.

Laundry would hang from balconies as new-age music spilled through windows of boutique shops on the ground floor. Between 2004 and 2008, as many as 6,000 people would walk along Taikang Road's crowded lanes on weekends.