More than half of foreign-owned enterprises in Shanghai say high rents could restrict their future investment plans in the city, according to a government-backed survey released yesterday. The survey, which tallied the responses of 213 overseas-invested companies, found that 54 per cent believed office rents were too high in Shanghai, the biggest factor cited against investment. Cost of factory land was given as a reason by 44.1 per cent and 30.5 per cent said overheated property prices had restricted their investment in the city. More than 70 per cent of the respondents to the survey, conducted by the Shanghai WTO Affairs Consultation Centre and the Shanghai Association of Enterprises with Foreign Investment, were involved in the manufacturing sector. Other key concerns were energy supplies, traffic jams and the lack of senior management talent, said a report that included the survey results. Yi Xianrong , a property analyst with the Chinese Academy of Social Sciences, said the survey showed that Shanghai's infrastructure could not keep up with the pace of economic growth. 'Traffic jams are a very serious and dangerous problem because they reflect the fact that Shanghai's growth rate is too fast and its infrastructure facilities are unable to cope,' he said. Professor Yi said he believed energy and resource shortages could be solved soon, but the overheated property sector and poor communications infrastructure in the city would take more time to fix. 'The only way is to slow down the pace of property development in Shanghai and truly implement the central government's macroeconomic control policy,' he said. Han Meng , a macroeconomist at the Chinese Academy of Social Sciences, said the overheated economy was unlikely to decrease Shanghai's attractiveness. 'Almost all international enterprises set up their Asian headquarters in Shanghai, while some vigorous private companies in the southern Yangtze River region have moved in, so I think land prices are fated to soar,' he said. Professor Han said the government of Shanghai had already introduced measures to cool demand for land. 'For example, the government has suggested investors set up multi-storey factory buildings to ease the land supply pressure,' he said. The survey was part of the 2006 Shanghai Foreign Investment White Paper issued by the Shanghai Foreign Economic Relations and Trade Commission and the Invest in Shanghai Working Commission. Consultation centre director Liang Qing said the survey should prove useful to government planners.