VICTORIAN Planning Minister, Matthew Guy, has approved planning permits for two developments within the City of Melbourne.

The permits were issued by the Minister on Christmas Eve and will allow for approximately 1,500 new apartments in the city as well as complementary commercial development.

The development at 568-580 Collins Street, between King Street and Spencer Street, will comprise a 67-storey building and include 588 apartments and 288 square metres of retail space on the ground and first floors and office areas fronting Collins Street.

Mr Guy said the development will build on the "strong residential precinct emerging in the west end of the city."

The development will also include 266 car spaces, 10 motorcycle spaces and 190 bicycle spaces.

Mr Guy said a full assessment of the application had been undertaken to consider the proposal.

"The findings of the assessment showed that the proposal is of a good architectural standard, is well integrated with the surrounding uses, provides adequate parking and addresses urban design principles," Mr Guy said.

The second application approved by the Minister is located at 245-263 City Road, Southbank. The proposal is for a two-stage development comprising a 46-storey and a 51-storey residential apartment building featuring 786 apartments.

The development will also include 1,116 square metres of ground floor retail space, 399 car spaces and 444 bicycle spaces.

Mr Guy said one of the issues relating to the application was the proposed height of the building at 170 metres which exceeded the preferred 100 metre height limit for the area. Mr Guy said he believed the location and size of the development could support an increase in height above the 100 metre preferred height limit.

"The Southbank area is characterised by a mix of use and large apartment-style towers and I believe this proposal would sit comfortably in this area."