In an update on Tuesday afternoon, police said a scene examination was continuing today and enquiries were ongoing, including the interview of witnesses.
"The community will notice an increased police presence in the area today as we make our inquiries," Bowman said.
"Once again, I want to reassure the community that we believe this was a targeted incident."
Neighbours of the Centre St property spoken to by the Otago Daily Times described hearing multiple gunshots, at first believed to be fireworks.
A neighbour witnessed two people being loaded into a ute which then drove off quickly in the direction of Southland Hospital shortly after the shots.
Neighbours said the residents had been living at the now cordoned-off property for about six months.
The ODT understands the property has gang links and that a heavy police presence outside Dunedin Hospital yesterday afternoon — following the arrival of people believed to be gang associates — was connected to the incident.
A neighbour said the event was not totally unexpected as activity at the property had been becoming increasingly hostile and volatile in the past three or four weeks.
One neighbour said the escalating hostility coming from the rental property had impacted on the tight-knit peaceful neighbourhood.
They were unsure what may have caused the situation to escalate further, but were concerned.
"There"s a heap of kids and families who live around here. We don"t need that s..t around here.
"We also have some elderly people living quite close by who are having to live with this."
While some children had slept through the event, others wanted to move away from the area.
One neighbour said they had considered temporarily moving away while the police investigation was active.
They were unsure if the incident was gang-related, but were fearful about the possibility of being caught up in any future retaliation.
