The City of Melbourne has planted more than 4000 plants on Southbank Boulevard to create Melbourne's first green tram track.

City of Melbourne Lord Mayor Sally Capp said native pig face and everlasting daises have been planted as part of a $42 million investment to create new public open space in Melbourne's most densely populated suburb.

"It's fantastic to see that spring has sprung on the central city's first green tram track, with the first flowers now blooming," the Lord Mayor said

"This ground-breaking project will create much-needed public open space in the heart of Melbourne's Arts Precinct and a neighbourhood we are seeing an increasing number of people call home.

"The project will create 2.5 hectares of new public open space connecting Domain Parklands to the Yarra River, including a 1.2 kilometres of dedicated bicycle lanes."

"We aim to increase open space by a massive 240,000 square metres over the next 15 years. That's equivalent to more than 12 MCGs."

Major tram works on Southbank Boulevard have been completed on time, including the creation of a new accessible tram stop, new tram infrastructure, and the central city's first planted tram track.

City of Melbourne Environment portfolio chair Councillor Cathy Oke said the project, which will take about 18 months to complete, will provide much-needed open space for residents who live in apartments.

"Three hundred new trees of different varieties are being planted and will create a diverse canopy all year round," Cr Oke said

"Green tram tracks have been common in Europe since the 1980s, including on light rail projects in the French cities of Reims and Orleans."

In Melbourne, Box Hill is the only location where we have green tram tracks, while Adelaide has green tram tracks at Victoria Square.

The City of Melbourne will also begin works this week to demolish a 1960s school building in Southbank to make way for a new 5,000 sqm park adjacent to the Boyd Community Hub.

"I'm delighted that construction of Boyd Park will commence this spring, following a tender being issued for the civil and landscaping works," the Lord Mayor said.

"Delivery of this open space is incredibly important because the population of Southbank is expected to grow by more than 50 per cent in the next 20 years to more than 48,000. Providing more parks as density increases is essential for a liveable city.

"The final design of Boyd Park is a result of a collaborative consultation process with Southbank residents and businesses and will include facilities for young families, a communal garden, leafy grassed spaces and improved pedestrian and cycle connections."

Construction of the Boyd Park is expected to be complete by the mid-2019.

New Parks to open by 2020

Southbank Boulevard

The City of Melbourne is investing $42 million to create new public open space on Southbank Boulevard and Dodds Street.

Market Street Park, Melbourne

The new park design will create 1,900 sqm of public open space in the central city. It will be the first new public park to be created in the Hoddle Grid since City Square was developed in 1980.

Boyd Park, Southbank

A new 5,000 sqm park adjacent to the Boyd Community Hub will have  play areas for kids as well as spaces for quiet relaxation and a communal garden.

Seafarers Rest, Docklands

North Wharf park is being renewed as part of a major development. The design will be pedestrian and bicycle-friendly, retain existing trees and protect neighbouring heritage sites.

Lincoln Square, Carlton

Kids will enjoy the new treehouse-inspired playground that will be part of this improved and expanded park. Expect new trees, lighting, pathways and an extra 3000 square metres of public open space.

West Melbourne parks

Stroll around the once-industrial area of West Melbourne to find three new and expanded parks at Hawke and Adderley, Railway and Miller, and Stawell streets. These parks are now open for the community to enjoy.