It took the Port Chalmers fire brigade about three hours to put out the fire after a neighbour raised the alarm about 2am, concerned the empty homes either side of the burning house would be set alight.
The owner of the Aramoana Rd home, Beverly Pahl, of Dunedin, said yesterday she was still in a state of shock over the fire that all but demolished her house.
"It's pretty awful. The reality of what has happened is only just sinking in, I think."
She had owned the house for about a year and had previously lived there, but had rented it out for the past few months.
The sole tenant was not at home yesterday when the fire broke out.
She had already discussed the fire with her insurance company, but was not sure yet if she would rebuild.
"It is such a beautiful spot, but I don't know yet what I'm going to do."
Fire Safety Officer Stu Ide, of Queenstown, said he inspected the remains of the house yesterday, but was still investigating the cause of the fire.
