"The man retreated into a wardrobe with that child and a second child."
McGregor said police withdrew from the property immediately, and were able to facilitate the safe escape of a third child at the same time.
The Police Negotiation Team and Armed Offenders Squad tried to work with the man but communication with him was limited and concerns for the children increased as the day went on.
"Medical advice received was that there were grave concerns for the children's health due not only to their age, but a lack of food and a potential for dehydration given the high temperature in the area of the house where the man had barricaded himself with the children."
"Police entered the property shortly after 3pm, where they were confronted by the man. He was shot by police and pronounced dead at the scene."
McGregor said the two children who had been kept hostage are safe and uninjured.
Neighbours said they heard several loud bangs and saw children being carried out the house.
A neighbour told NZME she heard up to 11 loud bangs which she described as "gunshots" about 3.30pm.
"Bullets were going through the roof."
Smoke could be seen outside the house.
Moments after the bangs, neighbours watched as police dressed in full black tactical gear carried what appeared to be two children out of the house.
McGregor said police are working to support the family.
"This was an experience nobody should have to go through and all involved will need ongoing care and support as they come to terms with today's events."