CHAOTIC scenes are playing out in Ipswich after a house fire sparked a fast-moving bushfire and forced the evacuation of local residents.

The fire broke out in the home in Bundamba, near Ipswich, just past 11am before spreading into surrounding shrubs.

Fireworks also exploded when the bushfire reached a shipping container on Hanlon St.

Landowner Craig Stevenson said he rents an area of the Bundamba property to fireworks company Skylighter FireworX.

"I don't know how many fireworks he had stored, but it would have been a lot fuller than usual with so many fireworks cancelled," Mr Stevenson said.

"Lucky there was so many emergency services on scene already.

"The firefighters got the fire out quickly."

Superintendent Wayne Waltisbuhl said today's conditions were a "firefighter's nightmare".

"It's extremely testing, we were waiting for this we knew it was going to be bad," he said.

"Hot dry and windy, a firefighter's nightmare.

"It's a really testing day for us especially in Ipswich, Gatton, Lockyer Valley and Somerset.

"It's not over yet we've got the whole afternoon and night to go."

The fire has eased however spot fires remain a concern for authorities.

Earlier, the unpredictable fire was travelling in a northerly direction from White St towards the Warrego Hwy, Bundamba.

The fire is racing through grassland bordered by properties.

Police declared an emergency situation for the area bound by Keith St to Bognuda St and Nelson St to the Bremer River and Warrego Highway.

Residents south of Bremer River should head towards Ipswich and residents north of the river should head to the northern side of the Warrego Highway.

Fire crews and air support are working to contain the fire but firefighters may not be able to protect every property.

Two patients are being treated for minor smoke inhalation and another for heat related symptoms.

The bushfire warning level is leave immediately.

Residents need to keep up to date and decide what actions to take if the situation changes.