Botherway said the fire was contained quickly and firefighters were on the scene for about 90 minutes.
A police spokesman said a 32-year-old woman was taken into custody at the scene and charges were being considered.
Police enquiries were ongoing as of midday Wednesday.
A neighbour, who did not want to be named, said he got up about 4.30am to go to the toilet and let his cat outside.
When he opened the door he saw flames coming from his neighbour’s home.
“[The flames] were coming straight out in a ball,” he said.
“They did get quite high.”
He evacuated his home with his housemate and said the two people who were living inside the burning home had also left safely by the time he got outside.
“It is something different that is for real,” he said of the early morning blaze.
He said firefighters were quickly on the scene and put out the fire.
He said it did not spread to any neighbouring homes, including his own.
Three police vehicles were parked outside the property as of 9am.