Dau Akueng, 15, and a 12-year-old boy were fatally attacked while walking home in Cobblebank in Melbourne's outer northwest on Saturday evening.
Witness reports and CCTV vision showed the killings were committed by up to eight masked males armed with machetes and long blades.
The offenders remain on the run, with police describing the alleged ambush as having the "hallmarks of a youth gang crime".
Officers believe the stabbings were targeted, but are also probing if they were a case of mistaken identity, with police saying the victims were not gang members.
Detective Inspector Graham Banks said there must be a strong deterrent for weapons-related violence,
"As I stand here before you, I think the penalties aren't in balance with what community expectations are or mine," the senior officer said on Sunday after the killings.
The Victorian opposition has backed his call, saying people don't feel safe in their own homes.
Police Minister Anthony Carbines concedes that the community feels youth crime in Victoria has never been worse.
"That's the perception and that's enough," he told ABC Radio Melbourne on Monday.
Victoria's latest crime statistics showed offences committed by children aged 10 to 17 jumped 17.9 per cent in the 12 months to the end of March.
It was the second successive quarter of record youth crime rates since data collection began in 1993.
Mr Carbines said the government had responded to police frustration with two pieces of legislation to strengthen bail laws and give officers greater stop and search powers.
While he was "happy to accept responsibility for these matters", the minister gave no commitment when asked if more changes were required.
"We have the largest police service in the country," he said.
"(It's about) how we deploy those resources effectively."
The 15-year-old's father, Elbino Akueng, visited the scene on Sunday, demanding answers.
"He was a basketball player, not a criminal," he said.
Collingwood Basketball Association general manager Trent Pearson said he knew the "talented player" quite well.
"He'll be sorely missed," Mr Pearson said.
One of the crime scenes was set up outside Jatinder Kaur's home on Marble Drive.
She told AAP her daughter first alerted her to the attack after seeing flashing lights out the window.
Ms Kaur said her children struggled to sleep due to the fear of what occurred.
"It's too scary for them," she said.
Another crime scene was established on Cobble St, near Christopher McFarlane's property.
He discovered one of the youths' bodies after hearing noises outside his home.
Mr McFarlane said he witnessed offenders, brandishing machetes, jump into a large car just before 8pm.
He now feels unsafe in his neighbourhood, adding that he usually walked his dog at that time of night.
"This is such a safe area, but now that's all gone," Mr McFarlane said.
"Everyone's just devastated and shocked. We've just got the machete bins in - they haven't done much good."
Victoria's machete ban came into effect on September 1, with the community urged to dispose of the long-bladed weapons in special bins installed at 45 police stations across the state.
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