Armed police swarmed on a house in Belmont after earlier reports of a gunman in the area had plunged nearby schools into lockdown.
Police surrounded a house in Belmont's Bardia St, on Auckland's North Shore, with guns pointed at it and had used a megaphone to order those inside the property to come out, telling them to "hurry up".
Five nearby schools in the area were locked down as a precaution, police said.
A woman has exited from a nearby property in extreme distress, saying she had been hiding on the ground for the past two hours.
It is understood police are still searching for a person.
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Daniel Kim, 18, who lives next to the property, said he was surprised when he came out of the shower to find armed police all over his street.
"I came out and saw police and I was like 'what the hell is going on?'"
Looking over at the house, he could see that one blind was open but couldn't see inside.
He said he was friendly with his neighbours but didn't know them by name.
Kim said he had little communication with the police during the incident, other than to stay inside.
Earlier, at least eight police cars, including a dog squad, were at the scene for more than 90 minutes. Armed officers could be seen crouching behind vehicles for cover.
Police officers were communicating with the house occupants, saying "this is the armed police", "we're surrounding the house", "come to the front door with nothing in your hands".
About 12.30pm armed officers - some with shields - swooped on the property positioned beside a police car in the driveway of the house.
In another incident nearby, a witness told the Herald they have also seen a bleeding man being arrested on Devonport's Domain St after a car chase with police. The incidents are not linked, police have confirmed.
Belmont Intermediate, Belmont Primary, Bayswater School, Northcote Intermediate and Takapuna Grammar School were all put into lockdown following instructions from police and the Ministry of Education. The lockdown has since been lifted.
"Police are responding to an incident in Belmont following reports of a person with a firearm The incident was reported to Police around 10.47am," police said in a statement.
"The Ministry of Education was advised and four nearby schools were placed into lockdown as a precaution. This was for a short period of time and they have now been lifted. A Police cordon is still in place on the intersection of Bardia and Moa St and locals are asked to avoid the area," police said in a statement.
Armed police blocked off Lake Rd, on which Takapuna Grammar is located, and also Bardia St which is a nearby side street.
'This is not a drill'
Takapuna Grammar, Belmont Primary and Northcote Intermediate have said the lockdown has been lifted and their students are safe. Bayswater School has said the police incident which led to the lockdown is over, the school is out of lockdown and students are safe.
Belmont Primary went into lockdown around 11am after being contacted by the Ministry of Education regarding an "armed incident" in the area, on Moa St, principal Bruce Cunningham said.
The students had practised drills for earthquakes, fire and lockdowns so they knew what to do - "they hide under the table or a bench out of sight and lock all the doors internally."
Students and staff were "fantastic", he said.
"They took it seriously, we said this is not a drill. There was no panic."
Some parents were now trying to pick their children up from school but that wasn't necessary, he said.
Students at Takapuna Grammar were reportedly told to get under their desks, according to a text one student sent to their parents.
Police have one person in custody following an incident involving a stolen vehicle in Devonport earlier this morning. The incident is not linked to the nearby police operation in Bardia St involving armed officers.
Witnesses have provided photos to the Herald of crashed cars on Devonport's Domain St.
A Devonport resident said she arrived on Domain St around 9.45 am to see a line of police cars.
She then heard the crashing of a car and loud popping of tyres. The resident said she thought she saw police ready to lay out a spiked mat to stop cars prior to this.
"A man gets out of the car [that's crashed] and runs to a house and smashes their gate out and then runs into the back garden of the property. The man then runs across the street to another house," she said.
"The man was shirtless and there was a smear of blood on him. I guess because he was in the accident."
The resident said the man was then apprehended on the street by armed officers.
"He looked in his late 20s and was pretty dishevelled."
The resident said she rushed to check on her family in nearby Cambridge Tce because one of the houses the shirtless man who was apprehended ran into shared a fence with her own.