Hot air balloon crashes near homes in Melbourne's inner south

Emergency services at the scene in Elwood. Photo / NCA NewsWire

Residents in Melbourne's inner south have experienced a "shocking" and "scary" start to their day after a hot air balloon came crashing down in Elwood.

Victoria Police said the balloon and the 13 people on board crashed about 7.20am on Wednesday in Tiuna Grove.

It was reportedly the third time the Liberty Flights balloon had attempted to land after being in the air for about half an hour.

There were no reported injuries, but emergency services remain at the scene.

Hot air balloon come crashing down just around the corner happy Wednesday🎈

— BB (@blu_boys) April 19, 2022

The basket landed in a driveway, with photos of the scene showing the balloon draped over an apartment block building and trees.

Pilot Nick Braw told 3AW some sort of malfunction had happened.

"I can't explain what the malfunction is, so I don't know want what caused it," he said.

"But the valve that releases hot air from the top, which we use to manoeuvre the balloon, didn't seal properly.

"It was a bit difficult to keep the balloon up in the air. I was flying low to try to bring it down.

"I was aiming for the beach but we didn't make it by about 200 metres."

Braw, who has been flying for 27 years, said it was the first time this had happened to him.

He also made it clear it was an "emergency landing" and not a "crash landing".

"There was control as we came down, it's not as if we fell out of the sky," he said.

Emergency services at the scene in Elwood. Photo / NCA NewsWire

Nicola, who saw it from the beach, also told 3AW she was given a "shock" when she saw the balloon coming down.

She said it "bounced along a few trees when it landed", but everyone seemed okay.

"Scary, but everyone's okay," she said.

"No one was screaming, everyone was really calm."

A couple of people on board also told her that it was their third attempt to land.

The circumstances of the incident are yet to be determined and the Civil Aviation Safety Authority is investigating.