Emergency services were called to the blaze on Galilee Lane at about 11.30am, the second in the Port Hills area in the past few days. Fire and Emergency NZ told RNZ the blaze had been caused by sparks from a construction site.
A Fenz spokeswoman said the fire was contained about 2pm.
"Around a dozen appliances, ground crews and four helicopters have been working on the fire. A number of road closures are still in place and around 16 houses have been evacuated.
"An aerial (helicopters) attack is still taking place and we expect our crews to remain on site overnight. We would appreciate it if the public could please stay away from the area."
Some homes were evacuated on Revelation Drive, Galilee Ln, and Bayview Rd.
The spokeswoman said the fire covered about 4-6ha.
NewstalkZB radio host Chris Lynch was at the scene of the fire and said the flames were dangerously close to homes.
Witnesses also reported high flames and heavy smoke with about 13 police cars and six to eight fire trucks attending the fire.
The latest blaze comes after a spate of fires on the Port Hills over the past week.
Firefighters are warning people near the fire to keep inside and take action to prevent the smoke entering households.