Residents and proprietors return to charred remnants and thick smoke in Burnside

The fire started as a small vegetation fire in Burnside about 4.45pm yesterday. Photo / Mike Houlahan

The charred remnants of macrocarpa logs litter what is left of Valley Lumber timber yard, burnt-out cars languish in a field of lingering smoke and a murky smell reminiscent of bonfires hangs thick in the air at the site of the Burnside blaze.

Residents and proprietors returned to the industrial suburb in Dunedin this morning after a large fire rapidly spread across 20ha of land and forced the evacuation of 100 homes.

After a night camped out with family, friends, kind strangers or at the aid of a welfare centre, a round of applause and sighs of relief welcomed the news of undamaged homes, no injuries and a safe return.

Tania Nicholson, a resident of Main South Rd, lives mere metres away from were the fire broke out behind the old Burnside freezing works.

She was alerted to the blaze just after 5pm last night and watched it quickly spread through wood stacks and go "completely out of control".

It wasn't long before Nicholson and her neighbours were bucket laden and toting garden hoses to protect their properties and dampen hedge fires.

Soon afterwards they would all be evacuated in a midst of panic and uncertainty.

"We were pretty panicked. Especially when they told us to evacuate because the cats decided to do a runner and I had to get the dog out.

At the height of the fire, six helicopters, 25 crews and about 100 personnel were fighting it. Photo / Olivia Franklin

"It was pure panic. I wouldn't wish it on anyone," Nicholson said.

Taking refuge at her brother's house, Nicholson spent the night unsure of whether her house would be there in the morning.

"It was hard not knowing what was going on. We were very scared," she said.

"It wasn't until we got home this morning that we could breathe a sigh of relief."

But relief has not come to all Burnside residents, with three industrial buildings being destroyed in the fire.

Peter Chalmers, who owns the Valley Lumber yard on McLeods Rd, said he lost $250,000-$300,000 worth of stock and his livelihood for the winter after up to 1000 tonnes of dry wood went up in the flames.

"I have lost probably half of the next six to seven months' income for the business," he said.

"We have lost logs and all of our machinery but buildings and everything are still intact, so it was really bad, but not as bad as what I thought last night when it was all smoke and fire."

Chalmers said it only took 15 minutes from a puff of smoke to spread to two fires in his "tinder dry" yard.

"The speed of it was just frightening.

"We were running around with fire extinguishers and buckets of water but it overwhelmed us. Little flames turned to 10m high."

Speaking from his blackened yard where fires were still smouldering and crews of excavators were at work, he was happy for the rain and the dedicated work of fire crews.

"The Fire Service is still present and it is going to go on for a few days, but there is beautiful rain coming down," he said.

"You can't get too despondent because you have to keep going."

The fire, which started as a small vegetation fire about 4.45pm yesterday, covered more than 20ha, caused the evacuation of at least 100 homes and destroyed three industrial buildings.

The huge blaze was brought under control about 9pm last night and specialist crews worked throughout the night and into this morning to ensure there were no flare-ups.

The fire is expected to take several days to mop up and two fire investigators are working to determine the cause of the blaze.