Outnumbered police formed a blockade around the house to block the group, who had come from an “anti-crime rally” in Central Park.
Video showed the protesters calling out criticisms of the police.
Speaking from Cairns today, Palaszczuk urged people to not take the law into their own hands.
“If you have evidence of wrongdoing or criminal activity, please report it to the police,” she said.
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“It is of concern that so many people would want to be doing that.”
Palaszczuk acknowledged that people had “very strong feelings” about crime in their communities, but urged people to “let the police do their job”.
“Someone could get hurt, this is the problem here. There could be unforeseen consequences,” she said.
Queensland Police Commissioner Katarina Carroll is due to address the incident this afternoon.