Billions of dollars worth of development applications at Melbourne's Fishermans Bend have been put on hold by Victoria's planning minister, in a move being called "unprecedented" by both sides of politics.

The State Government notified developers that 26 high rise projects proposed for the new community near Port Melbourne would not go ahead until permanent planning controls were put in place later this year.

The Fishermans Bend urban renewal precinct covers about 480 hectares of former industrial land south of Melbourne's CBD.

The Victorian Government projects that by 2050, it will house 80,000 residents and will provide employment for up to 80,000 people.

Planning Minister Richard Wynne said the proposed towers were too tall and have been poorly designed.

An artists impression of what Ingles Street will look like in the new Fishermans Bend precinct. ( Supplied: Victorian Government )

"Many of these applications are well above the interim controls that we have put in place," Mr Wynne said.

"They are certainly way too tall, [with] very poor setbacks, very poor amenity and not the quality that we would expect of a precinct such as Fishermans Bend.

"We are putting these applications aside until permanent controls are in place, and these 26 applications can be dealt with in an independent planning process."

Both the Government and the Opposition called the move "unprecedented".

Mr Wynne said his decision risked legal action by the affected developers.

He expected permanent planning controls for the precinct to be in place by August.

"This is the most significant urban development opportunity in the whole of this country and we have to get the planning of it right," he said.

Opposition planning spokesman David Davis said the decision would cause "massive uncertainty and massive confusion" for the development industry.

"This is occurring at a time of unprecedented population growth," he said.

"We need the additional capacity and now Daniel Andrews is causing delay, confusion and uncertainty by this unprecedented announcement."

By 2050 Fishermans Bend is expected be home to 80,000 residents. ( Supplied: Victorian Government )

Mr Davis said the Government had years to raise concerns.

"This is more than three years into this Government — I mean what on earth have they been doing?" he said.

"It's an incompetent Andrews Government, that's dithered and wasted three years on this project."