Apartments converted from cargo containers are expected to appear in Shanghai this year, aimed at providing low-cost homes for young people who are trying to establish their own business.

"Every container is redesigned as a room equipped with water and electricity and an air-conditioner," said Li Yi, head of the I Dreaming organization that initiated the project.

The room will be designed like a hotel rooms, with a bedroom and a toilet. Fire-insulation materials will help preserve heat and reduce noise.

It will take one or two months to build a three-storey container apartment, he said.

The rent for the 20-square-meter container apartment will be half the average cost of leasing an apartment in the same area, which will help relieve the economic pressure on young entrepreneurs, according to Li.

A pilot project will be carried out in Baoshan district of Shanghai, which will cover an area of 50 mu (3.3 hectares) and involve an investment of about 10 million yuan ($1.61 million).

"If the pilot project is successful, we will try to build supporting facilities for the apartments, such as restaurants, offices and gyms," Li said.

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