A $35,000 Christmas tree erected by Hobart City Council to shake off comments that it had "possibly the worst Christmas decorations in the country" has come under fire on social media.

The "modern and trendy" tree was installed in Salamanca Place, two years after Deputy Lord Mayor Ron Christie described the city's decorations as "a little bit tired".

Vowing to give the city a festive face-lift, the council decided to invest tens of thousands of dollars in new decorations last year, which have been crowned this year with the new tree.

Lord Mayor Sue Hickey said: "Our council officers designed, created and built this particular Christmas tree and we think it's a really modern and trendy addition in this fairly funky area," she said.

However, the tree has attracted a flurry of critical comments on social media.

Sorry, this video has expired No cheer for Hobart Christmas tree ( Jane Ryan )

Geelong Mayor Darryn Lyons, whose council spent $1 million on a 25-metre tall floating tree, took an opening shot.

"Hanahahaha hillarious [sic]," he tweeted.

"How embarrassing," tweeted tombryan.

"Looking at the materials and assembly, I'd say somebody's just made off with about $34,000."

"No , Hobart. You can do better," tweeted katherinemrohan.

On Facebook, Ben Cameron was blunt in his assessment.

"That is quite literally the worst attempt at a Christmas tree I have ever seen," he said.

"I wouldn't care except that this not only cost ratepayers money but if the council thinks this represents a new modern Hobart, I shudder to think what their plans are for ongoing new modern local development."

Angela Williams was also critical of the modern approach.

"That is not a Christmas tree," she wrote.

"Why couldn't we have a nice traditional tree? Children will walk past this and not even know it's a Christmas tree."

Decorations improving every year: Alderman

Hobart's Christmas decorations in 2013 had been described as the worst in the country but the city's council hopes to change that. ( ABC )

But Mr Christie said the decorations were getting better and better each year.

The new Christmas tree at Salamanca Square allows people to get a different perspective. ( Supplied: Hobart City Council )

"There's a budget in place to increase little bit by little bit the Christmas decorations each year," he said.

He described the new tree in Salamanca Place as "very modern, state of the art Christmas tree".

"It really fits in with Salamanca Square and that's going to be fantastic," he said.

"It's a little different because the design is going to be dramatic in the sense that people can sit in it or they can walk through it.

"The kids will love it at night time because it's going to be lit up as well."

Mr Christie said one of Tasmania's premier purveyors of art would heartily endorse the new structure.

"I think David Walsh would be rapt in it," he said.

"Very, very MONA."

The tree will be lit each night from now until Christmas.