Overnight, an emergency warning was issued for the southwestern part of Secret Harbour in the city of Rockingham, which is just south of Perth.
The Department of Fire and Emergency Services said there was a threat to lives and homes in the area,
Residents were told to act immediately as the fire was out of control and unpredictable and burning embers were likely to be blown around homes and spot fires were starting ahead of the main front.
Firefighters have now brought the blaze under control and the emergency warning has been downgraded, with the fire no longer threatening homes.
Fire crews are still on scene strengthening containment lines and patrolling.
Residents are advised to stay alert and be careful when driving through the area, about 60 kilometres south of Perth.
Homes were threatened yesterday as fires raged through scrub on the Fleurieu Peninsula in South Australia, The Advertiser reports.
Property was confirmed to have been lost in the blaze that started at Mosquito Hill, south of Mt Compass, just after 3pm. It had burned about 310ha by 6.30pm but has now been contained.
Kim Bishop lost his shed containing three vehicles, a trailer and the possessions of his children, who are moving house and were storing their furniture.
“Beds, washing machine and all their stuff is gone,” he said.
“It was going down towards the creek and then it just changed direction. I lost the shed, three cars and a trailer.
“The same thing happened two years ago on New Year’s. The CFS have done a great job.”
Neighbour John Jones, who has lived on Trigg Rd for three years, said everyone helped out early as residents flocked to Mr Bishop’s property, which was under threat.
“The community really helped out,” Mr Jones said.
As the fire swept through the Mosquito Hill Rd area, the flames came dangerously close to Warren Gosper’s property.
“Once it came over the hill there was nothing we could do,” he said.
“It came through real fast ... it only took a few minutes. The CFS got here and helped out and my wife became stuck down by the dam trying to save the cattle ... she managed to get out.”
Mt Jagged Wines owner Suzanne Warmer said she could also see smoke from the fire between Mt Compass and Victor Harbor.
“It seems to be going east but if it came back this way we would have to grab the cat and the dog and run,” she said.
“We can see the (water bombers) overhead and they seem to be doing a good job.”
Police told The Advertiser they had identified a roadside ignition point and crime scene investigators were scouring the site on Goolwa Rd, about 1.5km southeast of Mosquito Hill.
An emergency warning was lifted on Thursday evening and Mosquito Hill and Tooperang were facing the biggest threat, as the CFS said the fire’s forward rate of spread had been halted.
The CFA has downgraded the fire danger in areas of Wye River and Separation Creek, from the more serious “watch and act” warning to an advice message, The Herald Sun reports.
The fire is still not under control, however, and people are being warned to continue monitoring CFA updates throughout the night.
The latest update comes as residents who were evacuated from Kennett River, Grey River, Sugerloaf and Wongarra are now being allowed to return to their homes.
Authorities have moved traffic management points on the Great Ocean Rd back to the Skenes Creek area, with photo ID required for residents to pass through.
A weak change swept through Lorne yesterday evening, with winds dropping to two to four km per hour.
“Because of the wind change yesterday, the fire is now burning deep in wilderness country,” a State Control Centre spokeswoman told AAP.
Milder weather is giving firefighters time to build control lines around the bushfire, with temperatures in the low 20s today.
The fire is burning on a 39km front but for now is not directly threatening properties.
Firefighters from New Zealand will help battle the blaze on Monday.
Up to 600 people are currently fighting the fire that flared up on Christmas Day.