New planning rules to prevent so-called "dog box" apartments being built in Victoria will be introduced early next year, the State Government says.

From March, developers will have to meet minimum design standards to ensure new units contain adequate light, functional storage and allow for natural air flow.

The Better Apartments Design Standards include benchmarks to ensure apartments have enough room to fit a bed and a fridge, while setting minimum sizes for bedrooms and living areas.

Planning Minister Richard Wynne said Victoria had fewer rules than other states and the changes would make units more liveable.

"Apartment dwellings are here to stay and what we've found over the last decade or so, is the quality of some of these apartment's is quite poor because there's been no minimum standards," he said.

"The truth is, I can take you to apartments that are under construction now that don't meet the sort of standards that we would expect of the world's most liveable city."

The new standards do not include a minimum overall apartment size.

Mr Wynne said the new standards do not include a minimum overall apartment size as the Government wanted to allow for "flexibility and innovation".

Standards 'too prescriptive' for balconies

The Property Council of Australia's Victorian executive director, Sally Capp, broadly welcomed the new standards but said they were too rigid in places.

"We still feel that there some elements that might be too prescriptive, an example of that would be some of the private open space requirements and balconies particularly," she said.

The rules set minimum balcony sizes of eight square metres (or 1.8 metres in dimension) for studios or 1 bedroom apartments.

Ms Capp said local councils would need to be educated to ensure the standards were met and called for a review in 12 months.

"It is important that if we're having minimum standards that we get a really good understanding across the private sector and the government sector, including local councils, on how those rules are to be implemented to achieve the best outcomes for the community," she said.

David Waldern from the development and construction company Grocon said the standards "weren't perfect" but provided a benchmark for developers.

"People are saying with their money and with their intent, we want good quality accommodation, we need good quality accommodation and when it's there we will buy it and we will live in it."

"There's been a fair bit of to-and-fro in relation to working with the industry and with the Government on them, over time they'll develop."