The Victorian Government says it will fast-track the approval of what it deems innovative and sustainable, family-friendly townhouses and apartments in established suburbs.

From 2025, applications for new three-to-six storey residential developments will be assessed against a set of criteria, including the amenities offered in the building, whether its architectural design fits in with or enhances the local streetscape, and affordability.

Projects that meet those benchmarks and are deemed to be environmentally sustainable, are designed for families, are accessible and have communal spaces and gardens, will be fast-tracked through the planning process, reducing the time frame to approval from an average of 12 months to around four months.

A panel will assess the applications, but Planning Minister Sonya Kilkenny will decide which projects are "rewarded" under the "Great Design Fast Track" program.

Ms Kilkenny said the program aimed to encourage more family-friendly developments close to public transport, shops and facilities.

"We need more homes like this, the kind of homes that Victorians want to live in, the kind of homes that offer diversity, that are family friendly, that enable flexible living arrangements and are in really well serviced locations, close to public transport," Ms Kilkenny said.

Architects, planners and builders were being asked to contribute their ideas on what would be the criteria for a high-quality design.

She said the community would also be given the chance to offer feedback.

"Our community is so diverse, so what is good design for me and what makes a home functional and suitable to me may not be suitable to another Victorian family."

Not-for-profit owners' rights group Apartment Advocacy Australia welcomed the aim to boost the stock of affordable apartments suitable for families, especially during the housing crisis.

“Predominantly, the three and four bedroom apartment buildings have been actually targeted towards the baby boomers who are selling their homes and actually have adequate cash. So we've seen them actually at the premium end of the market,” CEO Samantha Reece said.

Ms Reece welcomed the inclusion of gardens and landscaping as a criteria for fast-tracked apartments.

But she said speeding up the assessment process may result in inadequate checks into the quality and reliability of construction firms.

“Longevity in the market, ability to actually look after consumers and the lack of defects in those builds should be one of the criteria," she said.

“A very attractive building can still have defects which are costly, especially if the builder has skipped town.”

Builders do not have to provide Domestic Building Insurance for residential developments above three storeys, meaning buyers are not covered for defects or incomplete work if the construction firm goes bust. 

Ms Reece said the government must remove that exemption before this program begins.

“Especially with the vulnerability at the moment within the construction sector,” she said.

The state government has made various housing policy announcements each day over the past week.

The State Opposition said Labor was rushing out announcements that lacked substance.

"Of course (fast-tracking) is a good thing to reduce unnecessary delay but to announce that before you've actually settled on better apartment designs means that we risk seeing poor quality stock come into the housing market," Opposition leader John Pesutto said.