About 12.20am this morning, police and the Tasmania Fire Service were called to the unit in Pioneer Parade.

The property was engulfed when crews arrived and had already sustained extensive damage by the time it was extinguished.

The unit was tenanted but unoccupied at the time.

Damage is estimated to be about $130,000

The cause of the fire is yet to be determined.

Police would like anyone with information to contact Crime Stoppers on 1800 333 000 or Launceston CIB on 6336 3945.