Flooding is nothing new in the area of South Dunedin. Here is an old image from 1927 (apparently) of South Dunedin including Surrey Street and MacAndrew Road looking toward St Kilda.
What is interesting the area that is flooded seems to be market gardens and there is an old brickworks down Forbury Road. The fields to the left of the brickworks (in the photo) are where Queens and Kings High Schools are now.
The house on the corner of Forbury and MacAndrew Road, although modified, appears to be still there today and is the Sinclair Corner Early Learning Centre.
I am not sure of the origin of the image.
Paul S Allen