Negative equity persists despite record price increases Save Share Tens of thousands of property owners face the risk of a credit crunch as they struggle to hold properties that are worth less than their loan, despite the recent record-breaking rise in house prices in Sydney and other capitals. The most exposed are property owners in inner-city Sydney and Parramatta, areas dominated by high-rise apartments. More than one in six households in Sydney city and inner south are holding an apartment worth less than the mortgage balance. Louise Kennerley More than one in six households (18.2 per cent) in the city and inner south are underwater or in negative equity, analysis by Digital Finance Analytics shows. This means that out of 30,076 mortgaged properties, 5414 apartments and 48 houses were valued lower than the current loan amount as of March 9, 2021.