A pilot has been killed in a small plane crash in a residential street near Moorabbin Airport, in Melbourne's south-east.

Police said the single-engine Cessna was coming in to land at the airport when it crashed into nearby Scarlet Street, Mordialloc, just after 5:00pm.

The sole pilot, believed to be a man in his 50s, had been on an hour-long joy flight.

The plane took out power lines on the way down and caught fire, but the cause of the crash is not yet known.

No-one else was injured.

Acting Senior Sergeant Paul Edwards from Victoria Police said a number of residents called emergency services to raise the alarm.

"It was in flames when the MFB [Metropolitan Fire Brigade] arrived, the flames were put out quite quickly and there was very minor damage to a vehicle in the street," he said.

Police said it was very lucky the plane landed on the road. ( Supplied )

He said it was believed the victim worked for a flight school.

"I believe he was an engineer for the company … who had been working on the plane and had taken it out for a flight.

"I think he'd worked for quite some time, 20-odd years. I think the aircraft was a 10-year-old aircraft."

Senior Sergeant Edwards said while it was tragic for the man's family, it was lucky the plane caused minimal damage.

The word Oxford can be seen on the tail of the plane.

In audio recorded from the airport's traffic control at the time of the crash, one of the workers can be heard saying "It's the 172 from Oxford I believe".

Oxford Aviation Academy said it would not comment when contacted by the ABC.

Grant, who lives nearby, told ABC Radio Melbourne that at first he thought it was a car accident.

The aircraft is on the street, its badly burnt in the fuselage behind the engine and the cockpit," he said.

Map Distance between plane crash and Moorabbin Airport

"I heard the thump and didn't pay much attention, thinking it was just a car accident down the road somewhere and then the whole neighbourhood went nuts with non-stop fire brigades, ambulances, police.

"You can't move out on Scarlett St for emergency vehicles at the moment.

"A neighbour was walking his child down there and scooted out of the way real quick and it was just a ball of flame all the centre of it."

The street is not far from Moorabbin Airport. ( AAP: Julian Smith )

Grant said Scarlett St was a small suburban street about 400 metres from Moorabbin Airport.

Despite its size, Moorabbin is one of the country's busiest airports with flying schools, charter flights, freight, recreational flights and air work such as surveying conducted from the site.

It is about 22 kilometres from the CBD.

The Australian Transport Safety Bureau is expected to begin its investigation on Saturday.