There were reports of a potential explosion that caused damage to at least one home.
Queensland Police said the incident took place on Nambucca Close, just before 1pm.
Police have declared an exclusion zone around the site, covering the area between Nambucca Close, Yaraki Ct, Pine River Drive, and Drysdale Ct, encompassing Barnard Cr, Hastings St, and Evans Ct.
Hastings St and Evans Crt are closed.
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Neighbouring properties have been evacuated.
Emergency workers are still trying to contain the fire.
Images from the scene showed thick white smoke emerging from a home, with firefighters navigating debris strewn across a yard.
People have been urged to avoid the area.