The 37-year-old victim, from the ACT, is believed to have suffered stab wounds to his body.

Police went to a public housing unit in Myuna Way, Mangerton, about 3am after a call to triple-0.

The call is believed to have come from within the unit, where the charged man lived with a second man, aged 44.

Both men were taken into custody and late yesterday were separately walked through the crime scene. Included was an inspection of an industrial-sized waste bin where forensic evidence, including a red jacket, had been located.

At 6.30pm police confirmed the 34-year-old had been charged with murder while the 44-year-old was released without charge.

Wollongong Detective Chief Inspector Joe Mura said results of a post-mortem to determine the victim's injuries and cause of death would not be known until Monday.

Chief Insp Mura could not confirm whether the man had been stabbed and/or whether his throat had been cut.

"I can confirm there was trauma to the body," Chief Insp Mura said. "A number of exhibits have been taken from the scene, many of which could be used as a weapon. It is yet to be determined forensically which one was the weapon."

A resident of block 15, where the death occurred, said he glimpsed the victim and saw injuries to his chest, but none to the throat.

A red Ford Falcon with ACT number plates, believed to belong to the victim, was taken from the scene by tow truck under police escort.

Insp Mura confirmed the car had been stolen from a home on the state's North Coast.

A police spokesman at the scene said it was uncertain what led to the attack.

"There are a couple of theories, including an argument that went wrong and self-defence," he said.

A crime scene was established around several blocks of units. Residents of block 15 were evacuated.

A neighbour said the victim, described as a fit, athletic man who was about 183cm tall, had been living in the street for about two weeks.

Another resident said he heard a disturbance coming from block 15 about 3am.

"I heard a scream that lasted about five seconds, then the sound of something hitting the floor, then it was all over," he said.