'Things are really bad': Cyclone Narelle strikes coast

Premier David Crisafulli warned residents to stay indoors as intense rainfall and strong winds sweep the region, causing widespread and possibly long-term power outages.

After intensifying in the Coral Sea to a peak category five system on Thursday, the Bureau of Meteorology confirmed the storm had been downgraded early Friday.

The monster storm made landfall around 8am AEST on Friday near the remote community of Coen, north of Cairns, triggering downpours and ferocious winds that could "blow apart sheds".

The town has a population of about 320 people.

"The best place right now is for you to remain exactly where you are," Mr Crisafulli said.

"Wind is intensifying, in many cases, will be the strongest wind that people have experienced in this part of the state for a long, long time.

"The eye of the system might pass over the top of the town of Coen and if this occurs, people will feel great intensity and then a lag."

Residents should not be fooled into thinking it's safe as the eye passes, Queensland's disaster coordinator Chris Stream told reporters.

"Particularly for those residents and communities in that direct impact zone," he said.

Senior meteorologist Sarah Scully warned the system would cause large airborne debris, major structural damage, and property destruction.

"Satellite data is indicating that there's widespread winds near the centre of the system, well in excess of 200 km/h.

"Very destructive winds may start to be experienced within the next hour ahead of the coastal crossing. Winds of this strength have the potential to cause significant structural damage to buildings and property, such as significant loss of roofs."

Emergency alerts have been issued urging residents in the remote communities of Lockhart River, Coen, and Port Stewart to take immediate shelter.

"Take shelter now in the strongest part of the building you are in," the warning said. 

It was set to be the first category five system to hit Cape York since Cyclone Mahina killed more than 300 people in March 1899.

Lockhart Mayor Wayne Butcher said conditions had deteriorated over night and residents were hunkering down to wait out Narelle's fury.

"It is just howling here at the moment," Cr Butcher told AAP.

"The winds are coming from the west and it is gale force. The trees are whistling and swaying side to side. Everyone is in and locked down and now we just have to weather the storm.

"I think it's crossing the coast right now. It's closer to Coen, but things are really bad here."

There were no reported injuries, but they expect to lose power, he said.

Vulnerable residents have been evacuated, tourists have returned home and schools have closed.

More than 100 emergency services personnel have been deployed as police went door-to-door to ensure locals were prepared.

After crossing Cape York, the storm is expected to lash the Northern Territory's Top End before moving to Western Australia's Kimberley coast.

About 500 people will be evacuated from NT's remote Gulf of Carpentaria community of Numbulwar in the coming days.

Residents choosing to ride out the storm have been warned emergency services will not respond if conditions are too dangerous.

However, some far north Queensland residents reckon they will be fine - they have beer.

"Everyone's line of thought is that you can't actually do anything during a cyclone, so let's have a beer," Tim Layton, of Greenhoose family-run accommodation near the Lockhart River, told AAP.

"Let's make it a cyclone party because there's going to be one hell of a clean-up." 

His family is no stranger to storms, with flooded roads every wet season ensuring the only way in or out is by plane or barge.