Residents feared their homes would go up in flames as a blaze ripped through a nearby car port.
An arsonist is believed to have started the fire which destroyed seven cars housed in the car port in Rose Court, St Cyriacs.
The attack is the latest in a number of arson incidents since the Easter holidays started.
Rose Court resident Kay Smith, 83, had fallen asleep watching television and had not heard the fire alarm going off at 8.30pm on Friday.
"Even now, to me it seems as though it was a nightmare," she said.
"If it is arson, I hope the police find whoever is responsible, I really do. I just cannot believe people can be so horrible to do something like this."
Jane Lawrence, a neighbour on the ground floor across the corridor of the sheltered accommodation complex, phoned Mrs Smith to tell her of the fire, which luckily woke her up.
Mrs Smith said. "When I awoke I heard the fire alarms going and Jane said I had better go to her.
"I went to go over and I saw the flames through my curtains. It was just like seeing the Australian bush fires. It was horrendous."
Thirty residents were taken to the nearby Fernleigh Centre in North Street while firefighters spent two hours battling the blaze.
Mrs Lawrence, 73, said: "I put my cat in a holdall and staggered down with him in my arms.
"I think the fact I couldn't do the zip up on the holdall was an indication I was a bit shaken.
"I did wonder if we would have any flats to go back to."
Police are investigating whether a petrol can found in the doorway of the Chapel Street entrance to Woolworths has anything to do with the incident.
It was found about 11.30am on Monday by a member of the public.
Fire crews were on the scene less than a minute after being mobilised.
Fourteen firefighters used breathing apparatus to tackle the blaze.
Detective inspector Jim McKnight of Chichester CID said: "I would ask for anyone who saw any person or people acting suspiciously on Friday evening, or has any other information that could assist us, to contact police on 0845 6070 999 with this information or to contact Crime Stoppers on 0800 555111.
"Anyone living, working or visiting the city centre area is encouraged to be vigilant and report suspicious activity to police."
Click the green play button to see Chichester district deputy commander talk about the fire investigation.To see more pictures of the devastation follow thee links:
http://www.wsfb.co.uk/pictures/170409/1.jpg http://www.wsfb.co.uk/pictures/170409/2.jpg http://www.wsfb.co.uk/pictures/170409/3.jpg 