Witnesses say revellers were yelling gang references and some jumped from the balcony at Shed 20 Princes Wharf Apartments on Quay St, into a car park to try to evade police.
Police said at about 7.20pm Friday they received a report of drinks being thrown off the balcony.
When they arrived, a fight involving multiple people broke out, resulting in several being taken into custody.
Police are yet to release details on what charges have been laid.
A woman at the scene told Newstalk ZB a group of people were screaming at about 50 police officers from the balcony.
She said five or six of men came down a lift and ran out of the entrance, straight at police officers.
”That’s when I heard glass smash and tear gas or pepper spray go off.
”A man who was just a bystander was screaming at police saying he had been pepper sprayed for no reason and his eyes were really swollen and red.”
She said about five or six people were sitting outside Shed 20, some bloodied and in handcuffs.
The woman said about 15 police officers had made a barricade around the building so no one could come in and out.
Another witness said the incident started just after 6,30pm. He said police initially came to move the group from drinking outside.
”The police came back after they started throwing bottles and making noise.”
The fight happened when the police were on site.
One woman wanting to get back into the building was told by police to park her car but she would have to wait until she could return inside. She was not told what was happening.