Bao Jialong was ecstatic after drawing the No 1 ball in a lottery on Sept 2 to determine who would be first to choose which floor they'd live on in a newly built 18-story residential building in Shanghai.

The 72-year-old, whose ball was among those of 10 households of Pengpu New Village in the lottery, couldn't hold back his excitement.

In the end it was the 15th floor that became his first choice, as Bao believed the floor had the perfect combination of view, sunlight, water and good air quality.

Such lotteries have become commonplace in many urban villages in Shanghai, as the city seeks to regenerate its older urban areas and place residents in housing that is up to modern standards.

Bao's household was among 100 others that would be moving from old and dilapidated buildings, often with shared kitchens and bathrooms, into a shiny new apartment building fitted with the latest mod cons.

Some 2,100 households from Pengpu No 1 Village will be relocated into new accommodations shortly, according to local officials. For Bao, he and his wife had spent the past 20 years living in a space of 13 square meters with a shared bathroom and a space for cooking shared with two other families living on the same floor. The outdated compound was built in the 1950s.

The Jing'an district government's plan to revamp the residential compound, which failed to meet people's living needs, began in 2019. They decided to tear down the 40 smaller residential buildings and replace them with 17 apartment blocks. The residents moved out in autumn 2021, and are scheduled to get the keys to their new homes in the first half of next year.