Seoul’s housing market is facing renewed pressure from both apartment purchases and rents. The government’s partial easing of household loan regulations will raise the 2026 household debt growth target from 1.5% to 3% to support genuine homebuyers and ensure adequate mortgage lending, but analysts warn that borrowing limits on expensive homes could concentrate demand in mid- and low-priced apartments in outlying districts. The Korea Real Estate Board said 14 of Seoul’s 25 districts recorded January-through-July 2026 apartment price gains exceeding their full-year increases in 2025; Dobong and Jungnang rose 5.62% and 5.97%, respectively. At the same time, monthly apartment rents of at least 5 million Korean won have appeared in 18 districts, including Guro and Nowon, with 1,610 such leases signed through September 9, up 19% year on year and more than triple the 413 recorded in 2021. Northern Seoul monthly rents rose 6.61% in the first seven months, faster than southern Seoul’s 4.97% increase, while lease renewals reached 51.3% of reported contracts through August 11. Analysts attribute the rental pressure to Seoul’s chronic housing shortage and a shift from jeonse, a lump-sum deposit lease, toward monthly rent; higher interest rates could accelerate that shift.