Homicide police are investigating after the body of a 31-year-old woman was found in a car boot at Ipswich.

A crime scene was set up at the property on McGill Street, Raceview, late yesterday afternoon.

Police said a 36-year-old Raceview man was arrested late last night at the address and is currently assisting them with their inquiries.

The man and woman are known to each other.

Candice Casey lives just a few houses down and walked past the crime scene taking her kids to their nearby school.

“I was at my son’s graduation and my daughter sent me a message saying someone died on the street so I was freaking out.

“We got home and saw the police everywhere.

“It’s scary. This is just so close to home.”

Mother-of-six Candice Casey lives near the house where the body was found in the car boot. Photo: ABC News/Anna Hartley

Anyone who may have noticed any suspicious behaviour in the area, or has any information which could assist with the investigation, is urged to contact police.

Officers will hold a press conference this morning.