Seven new towers worth $570 million will be built in Melbourne's Fishermans Bend precinct.

Planning minister Richard Wynne visited Johnston Street, South Melbourne, on Friday to announce a $400 million redevelopment of the site.

It will include four apartment towers, a supermarket and retail space.

After negotiations with the City of Port Phillip and the developer, Mr Wynne said the project is smaller than an original proposal even though it has 1276 apartments in the Johnson Street develpoment and public open space.

There will be two towers 39 and 49 storeys high built on Normanby Street and a 12 storey block on Salmon Street.

The government announced a planning overhaul for Fishermans Bend in April, which is a former industrial site near Port Melbourne.

Mr Wynne said the city was evolving and the development would allow for more people to live and work close to the CBD.

Johnson Street, South Melbourne

  • 1276 apartments built across four towers
  • $400 million development value
  • Currently a warehouse and vacant space

Normanby Road, Southbank

  • 525 apartments built across two towers
  • $130 million development value
  • Currently a car showroom

Salmon Street, Port Melbourne

  • 157 apartments built across 12 levels
  • $40 million development value
  • Currently a vacant lot