There were 23 housing projects approved for sale in Shenzhen in November, adding 13,217 units of new housing, including 9,714 residential homes, a three-year high in supply, Yicai.com reported.

This compares to the middle of the year when the housing market appeared to be cooling down. There were only one or two projects that were handed the green light for sales, the report said.

Due to the large amount of supply entering the market, the inventory of new residential homes has increased to 36,000 units, which will take 14.8 months to sell.

The boost in new housing projects has fuelled the market atmosphere and increased the transaction volume. In November, 4,828 new homes were sold, an increase of 23.6% from the previous month. Among them, 1,985 units were residential homes, which saw a month-on-month rise of 8.2%.

Although transaction volume increased, the average price of Shenzhen’s first-hand homes was 54,066 yuan per square meter, a decrease of 0.01% from October — a drop of 5 yuan per square meter.