Nearby homes were evacuated, but residents were allowed to return shortly after 6.50am.
Neighbours described a chaotic scene as screaming and banging rang out before a family rushed on to the street.
Resident Stacey Maskell told the Courier Mail she initially thought another house was on fire after hearing the commotion and saw someone being doused with water as others tried to cool what appeared to be burns.
“I saw them tipping water over someone,” she said.
Another neighbour, Steven Cannon, called it “insane”.
“I heard people arguing, and then I came out and saw the smoke. Then all hell broke loose.”
Premier David Crisafulli said the people involved, neighbours, and first responders were in his thoughts.
“It involves young people, it’s a tight-knit part of the city and it’s a tight-knit community.”
A crime scene has been established, and investigations into the cause of the fire are ongoing.
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