A man who was at a Grey Lynn house which was dramatically raided by armed police said officers had believed it was a meth lab.
He also claimed that an officer apologised after not finding any evidence of criminal activity.
Police cars blocked off a section of Sussex St in Grey Lynn around 2.30pm today as armed offenders squad members wearing gas masks and carrying rifles stormed into the property.
A number of men at the house were handcuffed and made to lie on the driveway while police searched the property and cars which were parked outside.
The men were released after two hours and officers left the address without making any arrests or laying any charges.
A man who was at the address, who refused to give his name, said he had been visiting a friend at the Sussex St villa. Six men were there at the time, he said.
"[We were] sitting down having a beer, but they come in all guns blazing, gas masks on … swearing and shouting and screaming."
He added: "They threw a device at the back deck of the house. It was like a mild little cracker, I thought it was a friend letting off fireworks. And then someone pointed a firearm right at my head, screaming at me, 'Put your hands in the air'."
Neighbours reported four loud blasts like gunshots, which police later confirmed were distraction devices deployed by officers. No shots were fired and no one was injured, a spokesman said.
The man said police presented a search warrant which cited "substantial evidence" of methamphetamine manufacturing at the house.
"They've come here looking for a P-lab," he said. "There wasn't one here, and they carried on and carried on. It's a 2-bedroom apartment, and it's immaculate.
"They've got the wrong place and they should just come out and admit it."
The man claimed that a senior police officer apologised to the men after their handcuffs were removed.
Police did not respond to questions about whether the house was wrongly targeted or whether any apologies were made.
Earlier, Detective Sergeant Martin Friend said a search warrant was executed at the address, but he did not give further details. Inquiries in the case were ongoing, he said.
One neighbour on Sussex St said new tenants had moved into the $1.5 million, 60sq m villa around a month ago.
Earlier in the week, up to six patched members of the Tribesmen gang had been seen coming and going from the house. Some neighbours had laid complaints with police.
The man spoken to by the Herald rejected any gang links or criminal activity.