Three people, two men and a woman, were arrested and a firearm seized after a four-hour stand-off at a unit in Spence on Friday.

At 9.55am a police officer, using a megaphone, told the occupants: "Warning. We are outside the property. Can you please communicate with police outside the door." Police then smashed glass to enter the unit, shouting "Don't move", as scuffles were heard.

An armoured police vehicle at the scene of a police negotiation at a Spence residence. Credit:Jay Cronan

Australian Federal Police specialist response group negotiators entered and found three people in a bedroom.

A neighbour's child played in the front yard as members of the response group, wearing helmets and protective gear, emerged from the unit with the occupants and drove off.

Scene of a police negotiation at a Spence residence. Credit:Jay Cronan

Police had been sounding the alarm and talking by megaphone to the unknown residents of the O'Neill Street flat since 6am. The occupants had refused to talk to police, who had arrived in an armoured vehicle.

One resident said she had heard police giving a telephone number to the unit's occupants before she left for work about 7am. Other residents said there were often disturbances at the flats.