Police say the balloon set down about 7.15am on Sunday in suburb of Balaclava.
They say the pilot was very experienced and it was a controlled landing. There were no injuries.
Several people called emergency authorities after seeing the balloon come down.
Damian Crock from the Professional Ballooning Association of Australia told the ABC he had spoken to the pilot and it was not a safety incident but just a "very safe controlled precautionary landing."
He says he is confident safety was not compromised. "Every so often a balloon will land where we prefer that it wouldn't," he said.