Three Canberra developers purchased the blocks on Tuesday as part of the second stage of land release after two large sites were sold for $4.5 million each in March.

GeoCon Land Holdings bought the largest block, a 7385 square-metre site fronting Anketell Street, for $5.4 million.

The mix-used space allows for up to 185 units plus commercial street-level space.

Managing director Nick Georgalis said the 12-storey development was in the early stages of design.

He said it would be innovative yet affordable and could see the ground floor transformed into a restaurant, cafe or bar.

The company is also behind the town centre's Vue the Residence and Abode Hotel development and Belconnen's Wayfarer development, which will be Canberra's tallest residential tower once completed.

"We feel Tuggeranong will benefit a lot from all of Southquay," Mr Georgalis said.

"Obviously we've been looking at it for a couple of months now and we certainly wanted a location in the Tuggeranong town centre. We're very pleased to be a part of that."

Cartel Construction Pty Ltd purchased a 2236 square-metre block overlooking Lake Tuggeranong for $2.075 million. The development permits up to 34 dwellings.

ZBD Investment Pty Ltd bought the remaining 2278 square metre-block facing newly-created parkland for $2.23 million, which allows a maximum of 54 units.

Land Development Agency sales director Clint Peters said 11 registered parties bidded for a slice of the waterfront development in Tuggeranong.

"This successful sale follows the keen interest that was shown when the first offering of blocks in the Southquay development were sold in March," he said.

"It is certainly encouraging that so many local developers were here today enthusiastically bidding for these premium sites.

"I have no doubt that when apartments and townhouses come onto the market they will be eagerly sought by a range of Canberrans, not the least of who will be those who have lived in the Tuggeranong Valley for many years, are now empty nesters, are looking to downsize, but want to stay an area they know well."

LJ Hooker Commercial Canberra principal Mark Thompson previously expected a focus on residential development however, the sites require a minimum amount of commercial space.