An emergency warning was issued on Saturday advising people in the suburb of Dynnyrne to leave if they weren't prepared to defend their properties, with most deciding to stay, Chief Fire Officer Dermot Barry said.
"It came within metres of many of the houses there," he said.
The fire has now been contained but is "certainly not extinguished", and crews are expected to remain on the ground overnight.
A combination of aerial water-bombing aircraft and Tasmanian fire crews worked in tandem to contain the fire.
"The combination of ground crews working and supported by air attack has proven its weight yet again," Mr Barry said.
"(It's) a relatively new strategy, using both of those things together, and it's really proving itself time and time again in Tasmania."
Conditions were hot and often windy on Saturday, and the terrain is tough, he said.
"We won't go home until we're confident the whole thing is out and it's safe for people to go back home."
The cause of the fire is currently unknown.
18°C