The power gel was discovered by tenants of the property in Downes Rd.
It appeared the landlord's father, who had worked in the explosives industry, might have left the power gel behind when he moved away from the property, police said.
The disposal team arrived in Dunedin about 10.30am, retrieved the power gel, some cord and flares in short order and disposed of them.
It was the latest in a series of visits from the team to the South.
On November 9 they were called to a barn fire in Owaka amid concerns there might be gelignite inside, although it turned out to be weedkiller.
The team was in the area that day to detonate three mortars belonging to a female collector in Kaitangata, who became concerned about their stability after a bomb scare in Balclutha on October 28.
In that case, a South Otago farmer left 65 sticks of ageing gelignite and detonators on the steps of the Balclutha Police Station, causing the evacuation of several blocks of the township, before they were later detonated.
A Defence Force spokeswoman said the southern explosive disposals team had relatively few callouts a year.
However, when there was a particularly public event, such as that at the Balclutha Police Station, it was not unusual for publicity to spark small spates of calls to police from people concerned they had explosives on their property.
Police then contacted the team, who flew or drove from Christchurch, depending on the urgency of the matter.
