UPDATE: TWO women have managed to escape the flames of a raging house fire in Goodna in the early hours of yesterday morning.

Neighbours said they woke to the sound of loud crackling before witnessing the bright glow outside their windows.

"I could say it looked like hell, a hell fire, you know?," neighbour Ian Smith said.

"I woke up and saw a big orange light through the window, opened the front door and came out and the house next door was on fire.

"I yelled out to my wife, grabbed the dogs and got out the house and went across the road."

Mr Smith said the two women were forced to jump out of a window to escape the inferno.

Fire crews arrived to find flames had completely engulfed the property and were starting to threaten neighbouring homes.

The side of Mr Smith's house was scorched, and the fence destroyed.

"My neighbour, he's tried to with the hose put it out, he couldn't get to my hose because that was all up in flames. The bins have melted," Mr Smith.

"He grabbed his hose and tried to save what he could out the back."

Ipswich Command Fire and Rescue Acting Inspector Tim Burchmann said five fire trucks and 18 firefighters worked to bring the blaze under control.

"They went into action with multiple hose lines to protect the two exposures on either side of the burning building and extinguish the actual fire," he said.

The fire was contained within 40 minutes, but hot spots flared back up after 8:30am yesterday morning.

Crews said more than 80 per cent of the home had already collapsed upon their arrival and they were forced to extinguish the blaze externally.

The two women were taken to hospital to be treated for smoke inhalation.

There were reports a dog was also at the property, but it's unconfirmed if it has been located.

A crime scene has been declared at the property and fire investigators will work to determine how the blaze started.

Acting Insp. Burchmann stressed the need for residents to ensure they have working smoke alarms and an evacuation plan for their home. 

EARLIER: Police are investigating the cause of a house fire at Goodna earlier this morning.

Emergency services were called to an Alice Street address just before 2am, to find a high set Queenslander well involved.

Firefighters were able to bring the blaze under control and stop the flames from spreading to nearby homes.

The two women who were inside the house were not injured.

Police have declared a crime scene while investigations continue.

It's the second house fire in the suburb in two days.