This morning, there was a cordon on Murdoch St preventing access to Wallingford St and police tents have been erected outside the property.
Auckland City District Commander Superintendent Karyn Malthus said the man was firing several shots at a house believed to be his own.
She said there was nobody in the house at the time.
"Police went forward towards the man and called on him several times to put down his firearm, however, he raised it at police staff and was shot at that time," Malthus said.
The man was shot once in the abdomen, with police providing him with first-aid and requesting ambulance assistance.
It was still not clear whether the man was threatening a member of the public, Malthus said.
Asked if she expected the man to survive, Malthus said she was "very hopeful that he does".
"Not one of my police officers come to work to take someone's life. I have every faith in the medical fraternity and the hospital.
"We understand this will be an incredible shock to the residents of the Grey Lynn community on what would have seemed like an average Monday night.
"We want to reassure them that there is no ongoing risk."
Malthus said there would be an increased police presence in the area in the coming days, as an investigation is conducted. The officers involved will also receive support and the Independent Police Conduct Authority will be notified.
Police will be in contact with local residents, including those who had footage of the incident.
"There's no doubt there's an increase in firearms-related offending in Auckland but we are doing an awful lot in that space. We have a number of operations and investigations running, including Operation Cobalt into gang violence," Malthus said.
"It's too early to say if this incident is related to gangs."
Waitematā Local Board member Graeme Gunthorp lives on Wallingford St, which borders the Grey Lynn Park.
Gunthorp told the Herald he heard initial gunshots after 5pm. He said he went to the street to investigate and saw a man holding a gun walking down the road.
He said he quickly took his wife and young children to the basement before phoning police.
While inside, Gunthorp said he heard more shots but was unsure if those were from the shooter or police.
Gunthorp said police later informed him a man, whom he believed to be his neighbour, had been shot by police.
Gunthorp said police told him the man had a gun and was firing it towards his own house.