A small amount of cannabis was found at the South Rd property, police said.
Five armed officers were at the property at the time of the forced entry and a further two police cars arrived shortly afterwards.
One officer smashed open the property's gate with a battering ram.
Senior Sergeant Craig Brown, of Dunedin, said one man was spoken to in relation to the incident.
The man had not been arrested but charges would be considered once the exact amount of cannabis was determined, he said.
● Dunedin police are searching for a man who slashed the tyres of a car in Tomahawk Rd.
Senior Sergeant Liz Waru said a resident of a flat at the address saw a man walk down the drive of the Ocean Grove property on Tuesday morning and stab the tyre of a car which belonged to another flat's tenant.
● The resident of a flat in Ethel Benjamin Pl disturbed two intruders trying to enter his house.
The intruders were caught entering a window early on Tuesday and fled when they were confronted, Snr Sgt Waru said.
● Dunedin police are reminding tourists to lock their vehicles and hide their valuables after a string of thefts from visitors' cars.
Any thefts or suspicious activity should be reported to Dunedin police on (03) 471-4800.
For more information about how to keep your home safe, visit the police website on http://www.police.govt.nz/advice/personal-community.