Police were called to the party on Rattray St after reports of a rubbish fire at 10.20pm.
A reporter at the scene said there were "well over 100 people" at the property. Many of them were young and intoxicated.
A couch was also set alight but it was extinguished before fire crews arrived.
About eight police officers eventually moved in and shut down the party, the reporter said.
It comes after reports that University of Canterbury-owned Ilam Fields has become home to uncontrolled gatherings while Covid-19 has restricted the usual Orientation Week events.
Two weeks ago hundreds of students gathered at the fields for a toga party with reports of another large party last weekend.
Mattresses were thrown around, people urinated in bushes, and the field was reportedly left strewn with rubbish and broken glass.
And in Dunedin, two students were seriously injured as St Patrick's Day shenanigans spiralled out of control in the student quarter.
