More than 300 houses were razed by a fire late afternoon Wednesday making more than 1, 800 people homeless in Kg Gersik Saguking here.

The fire broke out at about 5.45pm, as most of the victims were just returning from work.

No casualties were reported in the incident.

Labuan fire and rescue public safety officer Ahmad Azmer said three engines from three stations with more than 30 firemen rushed to the scene after receiving a distress call at 5.55pm.

He said the houses were completely gutted, and the department was investigating the cause of the fire and losses incurred.

"We managed to put out the blaze after half an hour and control the fire from spreading," he said.

"We saw the victims were trying to salvage their belongings but some of them were left with only the clothes on their back. It happened so fast and within minutes, the houses were engulfed," said a witness.