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Fire and Emergency New Zealand spokesman Brent Dunn said crews were called to the property on Ryal Bush-Wallacetown Rd, next to Ryal Bush Transport, north of Invercargill, at 3.32pm.
It was still "well ablaze" about 4pm, but a reporter at the scene said it appeared to be under control by 4.40pm.
However, there was still smoke coming from the roof of the house.
The road leading up to property was blocked off after the fire, but some people were now being let through.
Mr Dunn said at 4.30pm there were six fire appliances, including a tanker, at the scene and a specialist fire investigator had also been called.
Firefighters from Invercargill, Wallacetown and Winton were battling the blaze.