AN ALLEGED gunman who is believed to have shackled, bound and held hostage a woman and her daughter inside their Brisbane home has been found dead.

He was found dead by a police robot inside an upstairs room of the Banyo house around 7.25pm.

"We will continue our investigations in relation to identifying the male person and the incident that happened here and the people who were removed from the premises earlier," Patrol Services Inspector David Morganti said.

"Once we've identified him, we'll try and locate his movements throughout the day."

Insp Morganti could not confirm whether the man was known to the family, but did say a shotgun was found in the house.

Scientific, ballistics and scenes of crime officers will investigate further.

The Ethical Standards Command will also be involved in the investigation as the death is considered to be a death in custody.

EARLIER

POLICE have carried out a dramatic rescue of a woman and her teenage daughter who were shackled, bound and taken hostage by an armed stranger.

SERT officers made it into the house through an upstairs bathroom window about 4.15pm.

Inspector Sean Cryer said the two, who were held for more than five hours in heir home by a gunman, were "emotionally quite distraught" but suffered no major injuries.

Police are yet to sight the gunman or his weapon, despite sending in for the first time in Queensland policing operations, a small drone aircraft, alongside robots with remote cameras.

Mr Cryer said police had been unable to communicate with the gunman, despite negotiators spending hours of trying to make contact.

Neighbour Joan Sinclair, 80, described the affected family as quiet.

"You never see them out. They are quiet and keep to themselves."

Ms Sinclair said the family bought the land about 10 years ago.

"The house is very secure. It's like Fort Knox," she said, as she waited for police to allow her to go home.

"I've been at my son's and brother's since yesterday for Christmas and was hoping to go home. I've been waiting since 3.30pm," she said.

Ankur Kanegaonkar, 35, who lives on a nearby street, was shocked to hear there was a siege in the neighbourhood.

He said police condoning off the street told him when he left his house at 3pm that he would be able to return to his property.

But the perimeter was extended while he was out shopping, and he has been excluded since 5.30pm.

"They just told me there was an incident," he said.

"I wouldn't have left if I had known it was a siege. I live with my wife and two young children. I thought it was a safe area - there's a school and university close by. But after this, it makes you worry a little bit."

EARLIER

A MAN believed to be armed is holding police at bay at Banyo, in Brisbane's northeast.

Neighbours of the home, some of whom reported hearing gunfire, are evacuating the area after police declared an emergency situation under Public Safety Preservation laws at 11.45am.

Police have sent in negotiators, among other specialist officers, to deal with the man.

A police spokeswoman said the man was believed to be in the house with others, but could not say who or how many.

"There are unconfirmed reports of a firearm," she said.

Inspector Sean Cryer said officers heard two gunshots after entering the home then retreating in the face of a man armed with what they believed was a rifle or shotgun.

Police believed the man was in the house with two female residents but did not live there himself.

They have tried, so far in vain, to make contact with the trio via phone calls and overtures from public negotiators with a loudspeaker set up outside the house.

Officers had responded to a call from the public before 11am this morning.

Police remain in the dark about what has happened to those inside the house, and their welfare, since the gunshots.

"We have no idea about the conditions of the persons inside because we haven't been able to establish contact," Inspector Cryer said.

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