Building Minister Guy Barnett predicted the concession would allow for the construction of up to 2000 properties over three years.

Under the scheme, the properties must be new build and rented for a minimum 12-month lease term.

Master Builders Tasmania executive director Michael Kerschbaum said the scheme would be a good short-term solution for the tightened rental market which was at its worst in Hobart.

He said the tax holiday would lead to development of more rental properties after the market had succumbed to dwindling stock and reconfigurations of some properties into short-term accommodation.

Shelter Tas executive officer Pattie Chugg said the state needed more schemes and subsidies to encourage housing developments, particularly for low-income earners, located near services and employment.

“Increased housing costs are adding greatly to the cost of living for Tasmanians,” she said.

“Many people with low to moderate incomes are now paying 30 to 60 per cent of their income on rent in the private market.”

The organisation has called for parties this election to commit to clearly defined public and community housing targets, improved housing security for private rental tenants, more housing options for young people, and for the planning system to more strongly promote affordable housing.

Anglicare has proposed this includes setting a target for the percentage of affordable housing for all new developments.

Labor’s housing spokesman Josh Willie said the requirement for new properties to be on the market for 12 months would not help people looking for long-term rentals.

Greens leader Cassy O’Connor said there did not appear to be any gains for rental affordability in the Liberals’ announcement.

“The Liberals are proposing to give property developers a land-tax holiday instead of investing more in the supply of social housing,” she said.

Median rent in Tasmania in 2017 went up 4.6 per cent overall with the largest rise (8 per cent) in the South.

The median rental asking price for a three-bedroom home was $240 in Burnie, $275 in Devonport, $320 within inner Launceston, and $495 in inner Hobart. Median rents in the outer suburbs of the state’s two biggest cities were $290 and $350 respectively.

Six months ago, the rental vacancy rate in Hobart was at 2 per cent, 3 per cent in Launceston and 4.1 per cent on the North-West Coast.