A passing motorist, who did not want to be named, said he had just finished grocery shopping with his partner when he saw a fight break out with up to 15 people gathered on the side of the road.
There were also about four cars surrounding the group, the man said.
He kept driving but moments later he returned to the spot and started filming.
"I just got the end of the commotion...it looked like someone in the car fired the shot, you hear it and then see a small puff of smoke before the Landrover takes off," the man said.
"It was crazy...usually it's a pretty chill out area."
A local grocery store shopkeeper said there were many police in the area near the junction of Bahari Dr and Swanson Rd.
Police were told a firearm was discharged in the area.
"There are no reported injuries," a spokeswoman said on Sunday.
Police, with the Eagle helicopter overhead, had been making inquiries in the area yesterday evening, she said.
Shortly before 6pm, a cordon was put up on Swanson Rd about halfway between Swanson and Ranui.