Yu says that the exodus of artists is the biggest problem of Tianzifang right now. Though he said he does not think that this will lead to the demise of the place, he is concerned that it will eventually result in a change of appearance and the loss of its iconic architecture.

"It is time to preserve the nostalgic elements of Tianzifang with the help of government which should move to control the rising rent, encourage more creative talents to move in, and support the further development," he says.

Fabienne Wallenwein, a German PhD student who is enrolled in a one-year exchange program at Fudan University, shares the same sentiment.

"Before becoming a famous tourist area, Tianzifang was appreciated for its alternative atmosphere which set a strong contrast to the surrounding city life. This is getting lost in the process of commercialization," she says, adding that she is very impressed with how the buildings in Tianzifang are preserved.

"To me, these traditional residential areas are highly valuable because they help maintain a lifestyle which is unique to Chinese cities, whereas the modern lifestyle of globalized cities can be found in other metropolises around the globe."

In the meantime, Zheng Rongfa, the former administrative head, says he can only hope that the government thinks the same way about the future direction of Tianzifang's development.

"If the authorities can implement restrictions regarding the types of business that can exist in Tianzifang and provide artists with subsidies, this place can once again become a vibrant cultural hub," he says.

"The main challenge we face now is preventing modernization from destroying the eclectic mix of artists and small businesses that are surrounded by the ebb and flow of a living community. This is what Tianzifang is supposed to be about."