Gold Coast police are negotiating with a man holed up inside a Southport unit block, after two shots were fired in the suburb overnight.
Elite SERT officers are at the White Street complex, which was isolated and evacuated in the early hours of Christmas Day.
Traffic in the Southport CBD and the Gold Coast light rail were also shut down after police declared an emergent situation at 2am, with neighbours told to remain inside their homes.
Inspector Bruce Kuhn said they were trying to determine whether there was anyone else in the unit.
"At this time we don't know, and before we progress this any further that's something we're making 100 per cent sure of," he said.
He said the first shot was fired late on Christmas Eve at a house in Anne Street about two kilometres away.
"About 11 o'clock last night there was an incident at another address in Southport where a firearm was discharged," he said.
"From that time, a male person has been located in the block of units here... negotiators are in contact and communication with him."
Inspector Kuhn said investigations were continuing into a second shot fired from within the unit around 5am.
"It appears that's what it was, and that's something we're investigating further," he said.
"There have been no shots fired by police."
Brisbane man Marc Buckingham arrived at the complex around 9am Thursday morning to visit relatives, only to find their plans of a swim postponed.
"We just planning to do the Australian thing and have a BBQ by the pool," he said.
"There is a very strong police presence here...they've just told us to keep off the balconies and not post any pictures."
Mr Buckingham said seeing the complex surrounded by emergency services reminded him of a favourite Christmas film.
"It's like Die Hard."
Queensland Police have used social media to urge residents in the vicinity of the address to remain indoors.
Police have made a declaration under the Public Safety and Preservation Act following an incident that occurred...
http://t.co/ARb4fSRdrr — QPS Media Unit (@QPSmedia)
December 24, 2014
Residents in the vicinity of White Street in Southport are advised to stay indoors until further advised for their safety. — QPS Media Unit (@QPSmedia)
December 24, 2014
"While police understand that many people will soon be wishing to leave their homes and make their way to Christmas festivities, for their own safety, they are requested to stay inside until advised otherwise," a police statement said.
