Homes believed lost as ferocious fire hits NSW holiday town Batemans Bay

It is believed four homes have been lost near Batemans Bay on the NSW south coast.

Tourists and locals have fled to the beach, as a fast-moving fire burns in the coastal area.

Firefighters battled a blaze in Vista Avenue at Catalina, a suburb to the south of the town, which is four hours south of Sydney.

Some people were still in their homes, trying to save them as towering flames approached.

The normally blue sky has turned dark and orange across the area.

The Princes Highway is also closed in the many parts.

Natalie Sammons got a call where she was staying at her parents house at Lilli Pilli at 6am, and left with her family.

"You just have to be calm," she said.

Even firefighters have retreated from firegrounds, as multiple blazes burn, including near the village of Mogo.

Jackie Yeo, who was at the resort of Surf Beach, just south of Bateman's Bay said she can't believe how fast the fire came up.

"It's moved really quickly," she said."I hope there's something left."

Local man Ross Armstrong said he got a text at 6am and packed up and left to head to safety in the town.

"It's terrible. We didn't think it would come across this side of the river."

The bushfire affecting the area is called the Clyde Mountain fire.

According to the RFS, it is burning on the southern side of the Kings Highway, in the Buckenbowra and Runnyford areas.

The Princes Highway is shut between Jerrawangala and Milton, Batemans Bay and Moruya.

It is also shut between Cobargo and Brogo, and further south between Genoa and Cann River  in Victoria, and in Narrabarba between Imlay Road and the Victorian border. 

Traffic is very heavy northbound near Ulladulla, NSW as people try to leave the holiday area.

Motorists are being told to stay away from the area, but those already there should follow the directions of emergency services and traffic crews.