Residents who were forced to flee a dangerous grass fire in Ipswich on Saturday thought "the whole town would go up" after the blaze ignited a shipping container full of fireworks and flames edged dangerously close to homes.

The blaze was initially sparked by a house fire in Bundamba which quickly spread into nearby vegetation, causing more than a hundred people to evacuate and an emergency to be declared.

Firefighters were unable to save the house but confirmed no one was inside at the time.

Jason Parker (left) tried to protect his property with a hose but cars, a shed, and a boat were destroyed. ( ABC News: Talissa Siganto )

At the peak of the emergency several homes were under threat and the blaze destroyed sheds, boats, cars and other property in neighbouring backyards.

Jason Parker tried to protect his house with a hose but the smoke and flames became too intense to stay.

"It was very scary … it just took off like wildfire — it was insane," he said.

The house that burned down, sparking the fast-moving grass fire. ( ABC News )

Mr Parker said he feared the fire would destroy his home just nine years after it was inundated by water in the 2011 south-east Queensland floods.

"With a flood your house is still there, everything gets wet and dirty, but a fire — we would of lost everything. Just thank god the house is alright," he said.

A shipping container of fireworks on Craig Stevenson's property exploded when the fire spread to his land.

This shipping container exploded when the fire spread to the property. ( ABC News: Talissa Siganto )

Two other containers weren't damaged.

He said the fireworks were stored in a way to minimise the risk of damage.

"If you look at the structure, you can see that the way it's made that the fireworks actually exploded and the door came open and it all worked the way it should — luckily."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 16 seconds 1 m 16 s House fire sparks large blaze east of Ipswich

"Thankfully they're all properly mounded and they're well maintained and luckily there is a lot of firefighting equipment around."

Mr Stevenson said the blaze continued to reignite in several areas after it was extinguished and described the flames as moving like a "tornado".

"It was like you'd never seen. You could see it twisting in the air and moving in all directions," he said.

Bundamba MP Jo Ann Miller said the fire was a reminder for Ipswich residents to stay vigilant.

Locals feared the whole town would be damaged by the dangerous blaze. ( ABC News )

"Everyone in Ipswich has been fairly well prepared for this fire season," she said.

"We do know its been very, very hot, however this is a wake-up call for everyone in the Ipswich area to be very careful and vigilant."