The man, 43, appeared in Wellington District Court, with police successfully opposing bail and saying that additional charges may be laid at a later hearing. He was remanded to appear again on Friday.
Ambulance staff and police were called to a halfway house in Mansfield St, Newtown, at 5.50am, after a 37-year-old man died, apparently after being assaulted.
Detective Inspector Paul Basham said 15 to 20 people at the address - a halfway house for people suffering mental illness or involved in drug rehabilitation -were taken to the police station to be interviewed by detectives.
The family of the victim attended a karakia at the house this afternoon.
A post-mortem is likely to be held tomorrow with results in the following days.
Mr Basham said no weapon had been found, but the scene examination could take a couple of days.
"It's too early to say what's happened, but we hope to be in a position over the next 24 hours or so, once we've spoken to witnesses to determine what's happened in that house."
A woman who lived nearby told The Dominion Post she heard screaming around 5am: "It sounded like a haka".
Lyle Bassett, 26, who lives at the property , spent last night at his girlfriend's place. "They say it's a halfway house but to me it's a family house," he said. "We all look after each other".
Mr Basham said given the condition of many of the witnesses, police would take a considered approach to the investigation.
"We will be taking extra care, given fact that the people in residence at this place are mentally ill and receiving assistance."
He said support had been made available to the residents as, "obviously it's a traumatic event".
The name of the dead man would be released once his family had been contacted.
