The man, who wished to remain anonymous, said he had just arrived home from work when he heard screams for help inside his apartment complex on Red Hill Terrace in Doncaster East about 7.50pm.
“I heard a little kid crying and I (went outside) there was blood everywhere, it was on the carpet, on the walls, on my door,” he said.
Police believe three men had falsely claimed to be police to gain access to the complex before the trio pushed their way into a property.
“Whilst inside the property the trio demanded that the occupants of the home sit down on a couch and not move,” police said.
“The offenders then ransacked the home, searching through cupboards and drawers and stealing various items belonging to the victims.
“A scuffle broke out resulting in one victim being assaulted and one offender being injured.”
The neighbour said he rushed outside the property to find a young boy attempting to call police, while his relatives fought off one of the offenders.
“I saw a woman and man in a scuffle with a big bloke, who had no top on and was bleeding from his arm and leg,” he said.
“I had to protect (the child). I have a little kid myself and no kid should see that. It was very violent and graphic for a little kid.
“I grabbed him and gave him to (another) neighbour while I was on the phone to emergency services.”
9News has seen images of the outside of the property, which show large amounts of blood covering white walls.
Emergency services were called to the scene before police arrested the injured offender.
The 37-year-old Coolaroo man was taken to hospital and is currently under police guard.
One victim received minor injuries during the incident.
Police said the two remaining offenders fled the scene and investigations remain ongoing to identify them.
Anyone who may have witnessed the incident or has dashcam/CCTV footage is urged to contact Crime Stoppers on 1800 333 000.
