Public housing dwellings sold as construction spruiked

However, at the same time, 43 public housing properties were sold, bringing in just under $8 million in revenue.

There are an additional 47 Housing Tasmania properties for sale now through the DHHS website, with 45 through the open market, waiting to generate a further at least $6 million.

Of the 43 properties sold last financial year, 37 per cent were sold privately on the open market.

The other 63 per cent went to disadvantaged Tasmanians through programs giving public housing tenants and lower income households an entry into the housing market: HomeShare and Streets Ahead.

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"These schemes support low income households to realise their dreams of home ownership, by reducing the deposit or overall loan required to buy a house." Housing Minister Roger Jaensch said.

"We have a work program in place to renew our public housing stock by replacing houses which are costly to maintain or in less demand with new, and more appropriate dwellings in areas of high demand.

"The Hodgman Liberal Government is working through our Affordable Housing Strategy to alleviate housing stress and homelessness across the State. Our Affordable Housing Strategy is a multi-faceted plan to provide housing options to Tasmanians right across the spectrum of need."

Of the 47 properties now for sale, two properties are reserved exclusively for Streets Ahead and HomeShare clients.

Labor housing spokesperson Alison Standen said the government has only built 316 new social housing homes out of the 900 it said would be built by this time.

"Housing Minister Roger Jaensch needs to be building houses and getting Tasmanians into existing properties, not selling them off on the open market," she said.

A Communities Tasmania spokesperson said selling existing properties ensured the renewal of housing stock "to meet future needs".

"Properties [can be] deemed unsuitable for retainment because of their remote location, distance from essential services or transport, location in areas of low demand for social housing, or the property may require costly maintenance work to renew the building," they said.

ShelterTas executive officer Pattie Chugg said Tasmania "can not afford to see any loss of [public housing] stock and needs to keep the building of new supply a key priority".