AS POLICE attempted to gain entry to a house on Oregon Ct to end a 36-hour long stand-off, neighbour Scott Baillie said he heard "one thump with the sledgehammer".

Police had used the sledgehammer to force their way into the house at 7.30am before the 42-year-old man inside yelled to police: "don't come in".

AS IT HAPPENED | BREAKING: 'Armed with knives': Man in siege rushed to hospital

Mr Baillie said after he heard the man yell out, police backed away from the front of the house.

Police said the man inside the house had been armed with knives and fuel and was threatening to harm himself for the entire stand-off.

Mr Baillie said he thought the man may have had fuel around him and thought he may have been flicking a lighter.

He also believes he heard what may have been a knife dropped.

When police first attempted to end the siege at 7.30am, a woman with school-aged children was walking down Oregon Ct immediately after the loud bang from the sledgehammer.

During the stand-off Mr Baillie was able to leave and come back to his house whenever he wanted.

Although he wasn't too fussed about the stand-off, he thought it was possibly traumatic for his kids.

Mr Baillie said prior to the stand-off he had conversations with the man "over the fence".

"On face value (he was a) really nice bloke," Mr Baillie said.

"He had this charity that he talked about."

When the stand-off started at 10.55pm on Tuesday, Mr Baillie said he heard "a bit of yelling" at about midnight.

"I went to bed at 12.30am and then I was surprised when I woke up to see the police still here," he said.

Mr Baillie had lived at his house on the corner of Wattle St and Oregon Ct for three months and apart from other residents "yelling all the time", he said it was a good street and that neighbours stuck together and helped each other out.

A police spokesman said the Public Safety Preservation Declaration had been revoked and that traffic and people were free to move through Wattle St and Oregon Ct.

Police are still investigating the incident.

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