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Houthi rebels' tanks and sniper fire killed at least 12 civilians overnight in Yemen's Aden as they advanced toward the centre of the city, residents said, and a Saudi-led coalition airdropped arms to anti-Houthi fighters in the city of Taez, Reuters reported.

Local fighters backed by Arab coalition air strikes nationwide have been battling the Iran-allied Shiite Houthis for a month but Wednesday the rebels had taken several more streets in the port city.

The Houthis took the capital Sanaa in September, demanding a more inclusive government, and swept south, rattling top world oil exporter Saudi Arabia and its allies, who fear what they see as expanding Iranian influence in the region.

Fighting was still raging in the Khor Maksar district of Aden, seen as the main bulwark against the Houthis, early Wednesday.

Residents and city officials said the group shelled government buildings and residential neighbourhoods controlled by their armed opponents, and dozens of families had fled.

"The world, the coalition and the United Nations need to step in urgently to save our neighbourhood, which has truly become a disaster area after this indiscriminate shelling," resident Ali Mohammad Yahya said.