The Victorian government has announced plans for new higher-density zones around train and tram stations that could drastically change the look of Melbourne's suburbs.

The new "activity centres" will include the construction of taller residential buildings in 50 areas, with "gentler, scaled height limits" and low-rise apartments further back.

Premier Jacinta Allan announced the first 25 of these new activity centres on Sunday, mostly located in Melbourne's south-east along the Sandringham, Frankston and Glen Waverley train lines.

She said the announcement reaffirmed her status as "a builder, not a blocker".

"Too many blockers have stopped younger Victorians getting into their homes," Ms Allan said.

"What we are announcing here today is the start of that consultation process that will guide us street by street, community by community."

A further 25 activity centres will be announced by the end of the year, with consultation with residents in each suburb expected to be completed by the end of 2025. 

The government estimated the zones would lead to 300,000 more homes in metropolitan areas by 2051.

The announcement is an extension of a pilot program for activity centres in 10 different Melbourne suburbs — Broadmeadows, Camberwell, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood.

The government said the locations of the centres were recommended by the Department of Transport and Planning based on their proximity to public transport, jobs and services.

The activity centres will feature "walkable" catchment areas up to 800 metres around the station.

Local residents gather in show of concern

While the premier and planning minister spruiked the announcement inside the Half Moon Hotel in Brighton, a few dozen local residents gathered outside the press conference, at one point chanting "shame premier, shame". 

"This is a suburb which is 120 years old, these buildings would go," one resident said.

"If you put 20 stories in, that completely changes the dynamic of the suburb."

Victorian opposition leader John Pesutto said the plan would not solve the state's housing affordability crisis, and criticised the government for making the announcement during the caretaker period for local government elections.

"All of Melbourne will be blanketed with these high-rises that are expensive to build," he said.

"It's not talking to communities, it's not talking to community leaders or even councils.

"The government hasn't consulted and it's made sure it's dropped this latest, desperate announcement when local municipal authorities ... can't be in any position to meaningfully engage on these issues."

However, Planning Minister Sonya Kilkenny said the concerns were the result of misinformation and "mischief" from opponents.

"This change is not going to happen overnight, the sky is not going to fall down," Ms Kilkenny said.

She would not specify how tall buildings would be in each individual zone, and said the consultation process would determine those specifics.

"What might be a right height and size for one centre may not be the right fit for another," she said.

Property industry welcomes announcement

The property industry has welcomed the announcement of the new activity centres, with the Property Council's Victorian executive director Cath Evans calling it an "important initiative".

"The work done to date on the 10 pilot locations will hopefully inform the development of the activity centre plans for the new locations to ensure they are quick and comprehensive in equal measure," Ms Evans said.

"At the same time, the property industry recognises there are important local conversations required about future infrastructure and open space needs for growing communities, and we look forward to contributing to those discussions."

Ms Evans said the Property Council was also pushing for tax concessions on developments within the activity centres to "close the feasibility gap".

Lead organiser of YIMBY Melbourne Jonathan O'Brien described the announcement as "a fundamental win for all Victorians".

"This is a policy that makes sense, building more homes where people want to live," he said.

Ms Allan did not reveal how the 300,000 new homes would be built, but suggested the private sector would play a substantial role.

"I know a thing or two about partnering with the private sector to get big and important projects delivered," she said.

It comes as high construction costs and labour shortages cause approvals for new dwellings to fall across Australia.

Ms Allan said she would have more to say on the plan later in the week.