The neighbour, who knew the deceased, said the man had a troubled past, but had done well since moving to the Copinsha St community housing complex about seven months ago.
He was losing weight, getting fitter, eating better and saving some money for a Crisco’s package for Christmas.
The victim, who would occasionally come over for a beer or a chat, lived in Oamaru before moving to Palmerston late last year, he said.
Neighbour Margaret Peterson said she was watching a movie when she smelt smoke about 11.15pm.
She went to check her electric blanket, saw flames coming out the roof of the building next door and called the fire brigade.
Fire and Emergency New Zealand (Fenz) Palmerston Volunteer Fire Brigade chief fire officer Gary Johnston said crews from his station were first on the scene.
When they arrived, they found a one-storey flat on fire.
The flames were quite small, but there was a large amount of built-up smoke and heat.
A second crew from Waikouaiti Volunteer Fire Brigade arrived and entered using breathing apparatus.
Low-pressure delivery hoses were used to extinguish the fire.
Attempts were made to resuscitate the man using CPR.
Fenz Waitaki group manager Mike Harrison said police investigations were ongoing, but the fire was not being treated as suspicious.
The Waitaki District Council said in a statement the fire happened at one of its community housing units.
Tenants in adjacent units had been temporarily relocated and no other properties were directly affected, the council said.
