Charter 29's Plan for Victoria and the Planning System Reforms report warns of the Allan Labor Government's "radical" attack on Melbourne's suburbs and character.
The report suggests that up to 400,000 families will be displaced as a result of the rezoning of swathes of land around 60 activity centres and six future Suburban Rail Loop stations.
It warns Labor's plan to fast-track high-density developments across suburban communities would place increased pressure on existing services and infrastructure, including schools, hospitals and parks.
Furthermore, the report re-iterates concerns over the abolition of community consultation and the right of residents to object, as well as sound urban planning principals being abandoned.
Shadow Minister for Planning, James Newbury, said: "The Allan Labor Government's plan will displace hundreds of thousands of families across Melbourne's suburbs.
"As Labor plans to bulldoze up to 400,000 family homes for high-density apartments, residents are set to be locked out of this decision-making in their own communities.
"We also know that conservative estimates suggest that Labor's plan will see one million Melburnians lose their rights under planning law.
"What is most galling is that the Premier will oversee the demolition from her home in Bendigo, one hundred and fifty kilometres away from Melbourne.
"Labor cannot manage money, cannot manage housing and Victorians are paying the price."