“Jeonse” prices soared in the metropolitan area to exceed half the value of new homes last month, research found Tuesday.

The lump sum deposit that a tenant has to pay to the landlord reached 50.1 percent of home prices last month, the highest since 2006, research firm Real Today said. 

In Seoul and neighboring areas, jeonse prices increased 7.8 percent during the first half of the year, while the growth rate of home prices was a mere 0.6 percent.

The jeonse rate, which peaked at 50.1 percent of home prices in May 2006, had decreased to 39.8 percent in January 2009.

However, the figure increased more than 10 percent over the past two years.

Gyeonggi Province showed the highest deposit rates, averaging 52.1 percent, followed by Incheon with 48.4 percent and Seoul with 48 percent.

In July, the average jeonse prices in the southern part of Seoul amounted to 290.76 million won ($270,000) and they accounted for 46 percent of the home prices, an eight-year high.

In the northern part of Seoul, in which home prices are lower, the average jeonse deposit reached 50.4 percent of home prices.

“Amid the high level of economic uncertainty caused by stock market plunge, people who have considered purchasing a house are also turning to jeonse residency,” said a researcher at the firm.

“Especially in the metropolitan area, where a growing number of residents want to maintain their jeonse residency, jeonse prices would further approach home prices.”

By Lee Ji-yoon (jylee@heraldcorp.com)