A luxury car has become submerged in a sinkhole after a water pipe burst and flooded a street in the affluent Perth suburb of Subiaco.

The Mercedes-Benz was parked near a water main in the inner Perth suburb, when it burst just before 10pm on Sunday.

It became almost completely immersed in the water, along with a nearby park bench.

A Water Corporation spokeswoman said no one was injured in the incident.

Emergency crews attended the scene and repair works were conducted throughout the night.

About 60 homes and businesses were without water early on Monday as repairs continued. That number had fallen to three by mid-morning.

“Traffic management is on site and road diversions are in place. Motorists are asked to please show caution in the area,” the spokeswoman said.

“The cause of the burst [pipe] is being investigated.

“We sincerely apologise to those affected.”

– AAP