And though Taikang lives constantly in the shadow of the wrecking ball, the Luwan district government has forestalled Taikang's demolition, allowing it to grow through the process of gentrification.
The sub-letting of the state-subsidised homes in the neighbourhood is not exactly legal, but the government has chosen to keep one eye closed. "Residents sublet their flats for Rmb 5,000-6,000 ($700-800, Rs 28,000-32,000) a month, then go rent another residential place for Rmb 2,500 ($350, Rs 14,000) nearby and pocket the difference," says Erh.
"There was this man who used to hang out in the lane without a shirt, now he comes by wearing a shirt and walking his dog."
For the residents living in cramped quarters, sub-letting these government-subsidised houses is a boon, particularly since the government prefers to look away rather than take a legal view of the operation.
Image: A shop staff walks out of an outlet of the French fashion brand Hermes in Shanghai | Photograph: Liu Jin/AFP/Getty Images
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