Household loans surged by nearly seven trillion won in June, marking the fifth consecutive monthly increase amid a heated housing market in Seoul.

According to the financial sector on Sunday, the total household credit extended by all financial institutions rose by five-point-eight trillion won from the previous month as of June 26.

With data for the final days of the month yet to be included, the total increase for June is projected to reach the upper six trillion won range.

This would mark the largest monthly gain in household lending in ten months, since August of last year when loans jumped by nine-point-seven trillion won.

However, demand for household loans is expected to decline sharply beginning next month, as financial regulators implement a new policy capping home-backed loans for property purchases in the capital region at 600 million won, a move described as one of the strictest yet.