Libraries, schools, aged care units or green spaces should be built above and around new train stations in Melbourne’s middle suburbs as part of the $50 billion suburban loop, consultants say.

Premier Daniel Andrews wants “value capture” to help fund the 90-kilometre underground line, meaning he plans to sell the land and air rights on and around the project's 15 stations to private developers and put the profits back into the loop.

But previous attempts at developing housing and retail at suburban train stations have had limited success, drawing criticism from planners and public transport advocates.

Apartment towers planned over the railway in Windsor and Ormond have stalled due to local opposition. Store fronts at new stations in Bentleigh and McKinnon lie vacant since their opening in 2016.