Police are continuing to question a 19-year-old man as part of a murder investigation into the death of a woman on Christmas Day.
Another woman and man were taken to hospital with what were believed to be stab wounds. The injured man was later discharged.
Residents said they were shocked at the death and that it was a quiet area.
"I saw the flashing lights, the ambulances, police cars and the crime scene investigators arrive," said one man, who did not want to be named.
"I'm completely in shock - it makes you feel lucky for what you have.
"There's never anything in this estate - this whole part of the town is very quiet.
"It is just unreal."
The SDLP's Pat Catney said he "can't imagine the pain" the victim's family would be feeling.
Robbie Butler, of the Ulster Unionist Party, said that "people's lives will be potentially changed forever" after the incident.
He appealed for anyone with information to contact the police.