Footage shows the moment police released tear gas into a South Auckland home to end a dramatic three-hour standoff after an officer was shot this morning.

Neighbours watched in horror as the incident came to a head in Chapel Rd, Flat Bush.

“I didn’t know what was happening. My son said there was police outside,” a woman living only five metres from the property told the Herald.

“So scary. My kids already seen the gun the police had.”

Counties Manukau district commander Superintendent Shanan Gray confirmed a man had been taken into custody.

A woman who lives in accommodation above the man said she was worried about her son at a nearby school and was visibly shaking when she arrived home.

Multiple loud cracks, bangs and glass shattering can be heard alongside dogs barking, before distressed yelling comes from inside the Flat Bush property. Photo / Anna Heath

Police say an officer was conducting inquiries about 9.30am when a firearm was discharged.

The police officer who was shot this morning had been discharged from hospital by 1.30pm.

In a video supplied to the Herald, the Armed Offenders Squad (AOS) can be seen storming the home as clouds of tear gas flow in the air.

Multiple loud cracks, bangs and glass shattering can be heard alongside dogs barking, before distressed yelling comes from inside the property.

Armed police officers surround a property after a police officer was shot in Flat Bush, South Auckland. Photo / Jason Dorday

Swarms of police are seen stationed around the home and on the balcony of a surrounding property.

A Herald journalist on the scene reported an extremely harsh chemical was present in the air, causing onlookers to disperse with eye irritation.

The loud cracks rang out about 1pm, and shortly after, a man in a back singlet and shorts was handcuffed and seen being taken into custody shortly afterwards.

Police responding to an incident on Chapel Road in Auckland's Flat Bush. Photo / Jason Dorday

Earlier, workers on a nearby construction site were evacuated.

“They are trying to smoke him out,” one said.

Workers also said they heard a man yelling “they set me up! They set me up!” when police arrived on site this morning.

Several schools in the area were locked down but have since reopened.

The Salvation Army confirmed it was aware of an incident that occurred at or near one of its social housing properties.

A spokeswoman for Airways New Zealand – the country’s largest air navigation service provider – said flights to and from Auckland Airport were disrupted after police flew a helicopter above the scene.

The public has been advised to avoid the area.