"Hundreds of residents of the districts of Telal and Sulamaniyeh took to the streets to celebrate and express their support for the army," he added.
"The army had to retake these neighbourhoods because many homes have tunnels leading to the nearby citadel."
The state news agency SANA said civil defence and public services were "sent back immediately to carry out the necessary repairs and restore normal life to the neighbourhoods after they were cleansed of terrorists."
Locals have set up "popular committees" to prevent their return, according to residents and a security source.
"It's not very organised but there are youths especially in the Armenian districts protecting buildings against any new incursions. Some of them are armed and they can call on the army at any time to intervene," a witness said.