A Chinese real estate developer wants to build a luxurious new suburb on badly contaminated former Defence land in Maribyrnong that would include up to 6000 homes.

Developer Zhongren's $2.5 billion vision for the Maribyrnong Defence Site includes a canal carved through a sweeping bend in the Maribyrnong River to create more water frontage for future homes.

Redeveloping the site was the centrepiece of a housing affordability package unveiled by Treasurer Scott Morrison last month.

The latest plans have led federal Opposition Leader Bill Shorten to describe the Turnbull government's strategy for the disposal of the 127-hectare Defence site as "a complete and utter shambles" with "zero transparency" that put "millionaire private developers ahead of local residents".