UPDATE: Crowds steadily gathered around throughout the day, on the corner of Mingaye St and Torrens Rd, so officers decided to withdraw from the house at about 5pm.
Inspector Lee Jeffries said the tactical decision allowed them to serve legal documents to the man and end it with a peaceful outcome.
The man is believed to face court this week.
EARLIER: Police have declared an emergency situation at Caboolture as officers attend to a siege-like scene.
It's believed a 32-year-old man has been locked up in his home since last last night.
A police spokesman said the declaration was made at 10.30am this morning and includes the Torrens Rd, Mingaye St and Domnick St area.
About 12.15am police were called to a residence on Torrens Rd, Caboolture South following reports from a neighbor.
There have been no evacuations however the public have been advised to avoid the area.
EARLIER: Curious residents have gathered around a Caboolture South corner this morning as police tried to talk a 32-year-old man out of a home that he had been holed up in since late last night.
Inspector Lee Jeffries, who had been on the scene since before 9am this morning, said police had responded to a number of calls concerning a domestic disturbance at about 11.30pm, where he said the situation became a siege-like one.
He said the man became threatening towards police, but released a 32-year-old woman and two children who had been inside with him by 4am this morning.
"They were taken from the premises to a place of safety," he said, adding they were unharmed.
The relationship of those inside the home could not be confirmed.
"He is not asking for anything, he is making no consistent demands and there are no specific weapons involved.
"We have been trying to engage him to try and resolve the situation peacefully."
At 11am this morning, the man remained inside the house, with seven officers surrounding the home and police vehicles cutting off Mingaye St. The adjacent Torrens Rd was open to traffic, as Insp Jeffries said they did not expect the man to be a threat to drivers.
"His demeanour is certainly a lot calmer and if he leaves the premises we'll have him secured," he said.
"We are concerned for his safety.
"We are asking for people to avoid the area."
Insp Jeffries said a fire truck and firefighters were on the scene in case the man set fire to the house, and a dog squad was also present.
Many local residents could be seen surrounding the scene, watched with curiosity as police negotiators tried to get the man to surrender.
A family who lived near-by said they were surprised and shocked about the events, and that the house had been vacant up until a couple of months ago.
Update your news preferences and get the latest news delivered to your inbox.