Emergency services were called to the two-storey house off Bowhill Rd in New Brighton just after 1pm on Tuesday.
A fire investigator was at the scene to determine the cause of the blaze, which is being treated as suspicious, he said.
Yesterday afternoon, plumes of smoke covered the area and the nearby beach.
Police reopened Bowhill Rd last night after the blaze was extinguished.
However, officers maintained a presence at the property overnight and the police investigation is ongoing, a spokesperson said.
Yesterday armed police told people to leave the area near the fire, saying it was an active crime scene.
About five fire trucks and up to 15 police cars attended the incident.
Residents "downwind of the incident" were urged to keep their doors and windows closed due to the smoke.
Several neighbours described hearing a "loud bang" at the property, which they believed was an explosion, before they saw the flames.
There were no reports of any injuries.