Household loans extended by South Korean financial institutions increased at the fastest clip in four months in April as property trade gained traction, central bank data showed Tuesday.

Outstanding household lending by local lenders and nonbanking institutions reached 695.5 trillion won ($684.9 billion) as of end-April, growing 5 trillion won from a month earlier, according to the data by the Bank of Korea.

The on-month gain, which marks the biggest since a 6.1 trillion won gain in December, was credited to robust home purchases.

Government data showed that home transactions in Korea totaled 92,691 in April compared with 89,394 the previous month, signaling a recovery in the real estate market.

Household loans extended by banks increased 2.8 trillion won during the month, with home-backed loans growing 2.5 trillion won, according to the data.

Household debt is considered a key concern in Asia’s fourth-largest economy as high indebtedness in the private sector may hurt domestic demand. (Yonhap)