The teenager, a European male, is believed to have fled Dunedin on Tuesday night after what is believed to have been a domestic incident.
Senior Sergeant Ian Kerrisk said police were confident throughout the operation there was no risk to the public.
''As a result, cordons have now been stood down, although a highly visible police presence remains.''
The teen's family was liaising with police throughout.
''We are reminding people right through the Lowburn and Cromwell area to ensure that any vehicles are locked and buildings are secured, and that any suspicious activity is reported to police immediately on 111.''
Residents were advised late yesterday afternoon to lock their cars and stay inside during the search.
Affected locals had been shut out of the area for several hours, and Snr Sgt Kerrisk thanked people for their patience.
Earlier, three police vehicles and armed police could be seen from the cordon on Lowburn Valley Rd.
Road spikes were also deployed.
Police believed the teen might have had a firearm and warned he should not be approached.
A resident in the area, who did not want to be named, said locals saw armed police and said police had said the AOS, a drone and police dogs were brought in for the search. The person also saw a helicopter, which they believed was part of the search, about 5.40pm.
The person praised the response of police and said residents appreciated it was a stressful and sensitive situation.
Others spoken to said they had made sure fellow residents and any staff working in the area were safe.
Another person told the Otago Daily Times they saw several police cars speeding through Lawrence earlier in the day.
A police spokeswoman confirmed ''quite a few units'' were involved in the incident.
