Police arrived at a Brown Street property in Labrador at about 4.30pm yesterday after being called about a disturbance.
They began negotiations with a man who was in the residence alone and was believed to be unarmed.
An emergency lockdown was declared just before 7.30pm, with a unit block on the same street evacuated.
Some residents remained behind and were told to stay indoors.
Drivers were also barred from the exclusion zone.
9News understands the man police spoke with had made threats to explode a gas bottle.
Multiple police negotiators were on the scene through the night and into the morning.
Firefighters also attended.
Police told 9News there was one person in custody shortly before 10am AEST.
“Some police officer came and knocked on our door (and said), ‘You have to evacuate, there is something happening’,” one resident told 9News earlier.
A neighbour said the siege had been “pretty quiet” through the night.
